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THE    NEW,,' ■•=•■==  >  ■     ■•■'=' 


BRYANT    AND    STRATTON 


COMMON  SCHOOL  BOOK-KEEPING; 


EMBRACING 


SINGLE  AND  DOUBLE  ENTRY, 


AND 


ADAPTED   TO    INDIVIDUAL   AND    CUSS    INSTRUCTION    IN 
SCHOOLS  AND   ACADEMIES. 


By  S.  S.  PACKARD, 

Proprietor  of  Packard's  New  York  Business  Collegb, 
AND 

H.  B.  BRYANT, 

Founder  of  the  Bryant  &  Stratton  Chain  of  Business  Colleges, 


IVISON,   BLAKEMAN,  TAYLOR  &  CO. 

NEW  YORK   AND   CHICAGO, 


•  •    •     •     •• 

•  ••  •        •       •      *     ' 

.  ••  •      •    •• 

•  •      •  •••  .  , 


Copyrighted  by  H.  B.  BR  Yaw  x  and  S.  &  PACKARD,  1876. 


iEDUGATlOr*-  OKPf^ 


a^c 


PREFACE. 


This  little  book,  almost  in  its  entirety,  was  prepared  and  published  more 
than  seventeen  years  ago  ;  and  it  is  not  too  much  to  say  for  it  that  during  the 
intervening  time  it  has  fairly  divided  with  other  works  on  this  subject  the 
growing  patronage  of  public  and  private  schools  throughout  the  country. 

That  it  has  answered  the  purposes  which  called  it  into  existence  is  evi- 
dent, not  only  in  the  increasing  demand  for  it,  but  more  pointedly  in  the 
almost  universal  testimony  of  those  best  qualified  to  speak,  viz. :  the  teachers 
who  have  used  and  are  now  using  it  as  a  text-book.  Before  undertaking  the 
revision,  its  principal  author  communicated  with  a  large  number  of  this 
class,  asking  for  criticisms  and  suggestions,  and  especially  desiring  to  know 
if  any  radical  changes  as  to  matter  or  arrangement  were  desirable.  The  uni- 
form reply  has  been  that  no  such  changes  would  add  to  the  efficiency  of  the 
work,  while  they  might  cause  more  or  less  derangement  and  confusion  in  the 
large  schools  and  classes  now  using  the  book.  Of  course,  the  last  considera- 
tion would  have  little  weight  by  itself,  but  if  the  changes,  which  might  easily 
have  been  made,  and  which,  under  the  plea  of  novelty  and  freshness,  there 
was  great  temptation  to  make,  would  be  likely  to  result  in  no  real  advantage, 
then  the  force  of  the  argument  must  be  recognized.  But  the  author — much 
as  he  respects  and  would  defer  to  the  judgment  of  teachers  who  are,  and  are 
to  be  his  patrons — could  not  afford  to  act  in  this  matter  contrary  to  his  own 
convictions.  A  deference  to  the  opinions  of  others  may  be  a  graceful  and 
proper  tribute  to  the  wisdom  supposed  to  exist  in  "  a  multitude  of  counsel,' 
but  an  author  can  show  no  greater  respect  for  this  wisdom  than  to  follow 
strictly  the  lead  of  his  own  well-founded  convictions.  And  it  may  safely  be 
assumed  that  the  practice  and  experience  of  seventeen  years'  close  attention 
to  the  study  and  appliances  of  the  subject  covered  in  this  treatise  has  not  left 
him  without  these  well-founded  convictions.  And  that  they  have  a  full 
expression  in  the  aspect  of  the  revised  book  as  here  presented  may  also  b(i 
assumed. 

A  work  of  this  scope  does  not  require,  nor  should  it  have  an  elaborate 
philosophical  statement  of  principles  at  the  outset ;  nor  should  the  plain, 
practical  lessons  which  are  its  substance  be  environed  with  fine-spun  theories 
or  nicely-shaded  definitions,  which  belong  rather  to  the  esthetics  of  logic  than 
to  the  sharp  enforcement  of  primal  facts.  The  purpose  of  this  book  is  to 
teach  the  practical  lessons  of  Book-keeping ;  and  its  plan  is  to  accomplish 
this  in  the  most  direct  and  positive  way. 

To  that  end,  before  taking  up  the  science  of  Accounts  as  enforced  in 
Double  Entry  Book-keeping,  a  proper  space  is  given  to  the  more  simple. 


544464 


PREFACE. 

because  less  comprehensive  processes  of  Single  Entry ;  so  that  the  student 
may  get  hold  of  the  instrumentalities  of  his  work — technically, "  learn  the  use 
of  his  tools,"  before  he  is  called  to  the  higher  possibilities  of  their  achieve- 
ment. In  Single  Entry  the  form,  as  well  as  the  use  of  personal  accounts  is 
clearly  exhibited,  and  many  of  the  foundation  principles  of  the  science  of 
Book-keeping  are  illustrated ;  and  not  only  the  characteristics  of  the  Ledger, 
but  the  utility  of  auxiliary  books,  and  their  substitution  for  the  ordinary 
books  of  original  entry  are  carefully  exhibited.  In  fact,  that  part  of  the 
book  has  found  particular  favor  in  the  eyes  of  intelligent  teachers.  The  use 
of  the  same  material  for  Double  Entry  and  Single  Entry — as  in  the  case  of 
Set  3 — has  afforded  a  most  satisfactory  means  of  distinguishing  between  the 
processes  of  the  two  methods. 

The  enforcement  of  the  principles  of  Double  Entry  in  Part  II  is  made  with 
as  much  point  and  conciseness  as  the  author  could  command.  Nothing 
essential  has  been  omitted,  and  no  redundancy  practiced.  The  classification 
of  accounts  differs  from  the  former  edition  only  in  its  nomenclature,  which  is 
thought  to  be  an  improvement,  simply  because  it  is  more  clearly  the  exi)res- 
sion  of  the  real  distinction  in  accounts. 

In  the  regular  order  of  the  book,  the  plan  has  been  to  follow  each  fully- 
elaborated  set  with  "Practical  Exercises,"  in  which  the  material  only  is 
given — in  the  shape  of  memorandum  transactions — from  which  the  student  is 
required  to  write  up,  circumstantially,  all  the  required  books  of  entry  after 
the  preceding  models.  The  good  results  which  have  followed  this  plan  have 
suggested  to  the  author  the  propriety  of  furnishing  similar  memoranda  for 
the  written  sets  ;  and  inasmuch  as  it  is  deemed  best  to  preserve  the  same 
order  of  arrangement  as  to  consecutive  pages,  the  desired  memoranda,  with 
such  other  material  as  the  revision  seemed  to  demand,  will  be  found  in  the 
Appendix.  It  will  be  well  if  the  student  is  required  to  use  these  memoranda 
strictly,  in  writing  up  the  regular  sets,  rather  than  to  copy  from  the  book. 
The  material  for  short  sets  given  in  the  Appendix  is  to  meet  the  expressed 
and  proper  demand  of  teachers  who  have  felt  the  need  of  more  frequent 
tests  of  their  pupils'  progress.  There  are  decided  advantages  in  reasonably 
long  sets — and  as  a  matter  of  drill  they  cannot  profitably  be  omitted ;  but 
mere  routine  may  be  carried  too  far,  and  the  pupil's  mind  thus  diverted  from 
the  application  of  principles  which  is  the  main  purpose  of  teaching. 

But,  after  all,  it  is  not  presumed  that  any  text-book  is  to  supply  that  part 
of  the  work  of  instruction  that  belongs  to  the  living  teacher.  A  text-book  is, 
at  best,  what  its  name  implies,  a  book  of  texts,  the  elaboration,  amplification 
and  application  of  which  depends  wholly  upon  the  teacher  ;  and  it  would  be 
Baying  too  much  for  any  text-book — as  well  as  too  little  for  the  teacher — to 
assume  that  it  should  cover  all  the  requirements  of  individual  instruction, 
even  in  its  material  and  suggestions. 

There  is  at  least  no  such  claim  for  this  book :  the  best  it  can  hope  to  do  is 
to  serve  as  a  convenient  aid  to  teachers  who  will  supplement  its  lessons  and 
vary  its  methods  to  suit  individual  demands  and  answer  a  good  conscience  in 
the  honest  discharge  of  duty. 


0  0  INTENTS. 

"loot. 

PAGES 

Abbheviations  and  Characters, 7 

Plan, 8 

PART    I.— SINGLE    ENTRY. 

Introduction  to  Part  I., .  11 — 17 

(UESTIONS  FOR  REVIEW, 18 

fcsET  I. — Introductory— Showing  the  use  of  the  Books. 

Remarks, 20 

Day-Book, 21,  22 

Ledger, 23—25 

Practical  Exercises  and  Questions, 26 

Set  II. — BetaU  Dry  Goods.    {Prosperous) 

Remarks, 28 

Day-Book, 29—85 

Index  to  Ledger, 36 

Ledger, 87—40 

Cash-Book 41—44 

Statement, 45 

Examples  for  Practice, 46 

Practical  Exercises, 47,   48 

Questions  for  Review, 48 

Set  III. — Wholesale  Dry  Goods.     {Adverse.) 

Remarks, 50 

Day-Book, 51—54 

Index  to  Ledger, 55 

Ledger, 56—59 

Sales-Book, 00—63 

Casli-Book, 64,  65 

Bill-Book, 66 

Statement, 67 

Examples  for  Practice, 68 

Practical  Exercises, 69,   70 

Set  IV. — Furniture  and  Cabinet  Business.     {Prosperous.) 

Remarks, 72,   73 

Day-Book, 74—77 

Sales-Book, 78—83 

Ledger 84—87 

Cash-Book,         .        . 88,   89 

Time-Book, 90 

Statement, 91 

Examples  for  Practice, 92 

Practical  Exercises, 93 — 95 

Questions  for  Review, 96 

5 


COKTENTS. 


PART    II.— DOUBLE    ENTRY. 

PAGES 

Introduction  to  Part  II., 99—102 

The  Science  of  Accounts. 

Theory  of  tlie  Ledger, 103,  104 

Debits  and  Credits, 105 

Principles, 106 

Questions  for  Review, 1C7 

Set  I. — Produce  Business.     {Introductory.) 

Remarks, 110 

Day-Book, Ill,  112 

Journal, 113—115 

Ledger, 116—118 

General  Statement, 119—121 

Examples  for  Practice, 122,    123 

Practical  Exercises, 124,   125 

Set  II. — Grocery  Business.    {Prosperous.) 

Remarks, 128 

Day-Book 129—132 

Journal, 133—135 

Ledger, 136—140 

Balance  Sheet, 141 

Closing  the  Ledger, 142 — 147 

Description  of  Balance  Sheet, 147,    148 

Examples  for  Practice, 149 

Practical  Exercises, 150,    151 

Questions  for  Review, 152 

Set  111.— Wholesale  Dry  Goods.    {Adverse.) 

Remarks,      .        .        . 154 

Journal  Day-Book, 155 — 161 

Ledger, 162—167 

Statement,       . 168,   169 

Examples  for  Practice  and  Questions  for  Review,       .  170 

Set  in  .—Gentlemen' s  Furnishing  Business.    {Prosperous.) 

Remarks, 172 

Journal, 173 

Cash-Book, 174,   175 

Sales-Book, 176,   177 

Ledger, .  178—181 

Practical  Exercises, 181,   182 

APPENDIX. 

Written  Sets,  etc., 183—195 

Material  for  Short  Sets, 196,   197 

Practical  Hints, 198—202 

Business  Forms, 203—208 

6 


ABBREVIATIONS    AND    CHARACTERS 

USED   IN  THIS  BOOK. 


ABBREVIATIONS. 


Ac't  . 
AmH.  . 
Arts.  . 
Apr.  . 
Ass't'd. 
Aug.  .  , 


Bal..  . 
B.  B.  . 
Ms.  .  . 
B.  Pay. 
B.  Bee. 
Blk.  .  . 
BoH.  . 
BroH. . 
B.  W., 


Cap. 
G.B. 

Co.  . 
Com. 
Const. 
Cr.   . 


Dec. 

do.   . 
doz. 
Br. 
d's. 


A 

Account. 

Amount. 

Answer. 

April. 

Assorted. 

August. 

B 

Balance. 
Bill  Book. 
Barrels. 
Bills  Payable. 
Bills  Receivable. 
Black. 
Bought. 
Brought. 
Black  Walnut. 

c 

Capital. 

Cash  Book. 

Company. 

Commission. 

Consignment. 

Creditor. 

D 

,  December. 

Draft. 
.  The  same. 
.  Dozen. 
,  Debtor. 
.  Days. 


ea.  . 
E.  E. 
Emb'd. 

Ex.  . 
Exch. 


fav. 


Fig'd. 
Fol.  . 
For'd. 
FrH. 


gal. 


hhd. 


E 

Each. 

Errors  Excepted. 

Embroidered. 

Example. 

Exchange. 

Expenses. 

F 

Favor. 

February. 

Figured. 

Folio. 

Forward. 

Freight. 

G 

Gallon. 

H 

Hogshead. 


I.B.. 

Ins.  . 
Inst, 
Int.  . 
Inv.  . 
Inv't. 


Jan. 


L.F. 


I 

Invoice  Book. 

Insurance. 

Instant. 

Interest 

Invoice. 

Inventory. 

J 

January. 

L 

Pounds. 
Ledger  Folio. 


M 

Mar March. 

Mdse,   .  .  .  Merchandise. 

mo Month. 

Mgy Mahogany. 

N 

No Number, 

iVoo.  ....  November. 

o 

Oct October. 

O. LB.  .  .  Outward  Invoice 
[Book. 
P 

i>.    Page. 

Pay^t    .  .  .  Payment 

P.  C.B.  .  .  Petty  Cash  Book. 

Pd Paid. 

Pkg Package. 

pr Pair. 

per,    ....  By. 
Prem.  .  .  .  Premium. 


Bec'd    . 
B.  W.  . 


S.B... 

Sept.  .  . 
Ship't  . 
Sunds.  . 


yds. 
yr.  . 


R 

Received. 
Rosewood. 

S 

Sales  Book. 
September. 
Shipment 
Sundries. 

Y 

Yards. 
Year. 


CHARACTERS 


.  .  Account. 

% 

.  .  Per  Cent 

% 

.  .  Dollars. 

^ 

.  .  Cents. 

£ 

.  .  Pound  Sterling. 

X 

.  Sign  of  Multiplication. 

8 

.  .  Shilling. 

= 

.  Sign  of  Equality. 

V 

.  .  Check  Mark. 

11 

.  One  and  one-fourth. 

+ 

.  .  Sign  of  Addition. 

p 

.  One  and  one-half. 

— 

.  .  Sign  of  Subtraction. 

7 

V 

.  One  and  three-fourths. 

PLAN. 

The  book  is  divided  into  two  parts;  Part  I.  is  devoted  tc 
Single  Entry,  and  Part  II.  to  Double  Entry.  Each  part  has  eight 
distinct  series  of  transactions,  comprising  eight  complete  sets  of 
books :  four  of  which  are  written  out  in  full — the  other  four  given 
in  the  form  of  memoranda  for  the  student  to  arrange  after  the 
models  given. 

In  Part  I.,  the  first  written  set  illustrates  only  the  use  of  the 
main  books,  Day-Book  and  Ledger;  the  second  set  exhibits  results; 
Set  III.  begins  with  a  capital,  representing  a  general  merchandise 
business,  shows  the  use  of  auxiliary  books,  and  enforces  the  theory 
of  loss  and  gain,  by  comparing  the  capital  at  beginning  with  that 
at  closing.  Set  IV.  represents  a  furniture  business,  introducing 
principal  and  auxiliary  books. 

In  Part  II.,  the  fi,rst  set  is  introductory,  used  to  enforce  the 
leading  principles  of  the  science ;  Set  II.  continues  the  business 
begun  by  Set  I.,  enlarging  the  field  and  giving  a  wider  scope  of 
transactions — at  the  same  time  more  fully  presenting  the  theory 
and  processes  of  Double  Entry.  This  set  is  given  in  colors,  as 
affording  a  better  model  for  the  student.  Set  III.  contains  the 
same  material  as  the  corresponding  set  in  Part  I.,  and  is  used 
principally  to  show  the  differences  between  Single  and  Double 
Entry.  Set  lY.  is  a  practical  set,  using  all  the  books  of  original 
entry  as  principal  books— posting  from  them  to  the  Ledger,  and 
dispensing  with  the  Journal,  except  for  such  entries  as  cannot 
properly  appear  in  the  other  books.  This  set  presents  the  eco- 
nomic methods  of  Double  Entry. 

The  intermediate  Examples  for  Practice  and  Practical  Exercises 
explain  themselves. 


PART   I. 


SINGLE     ENTRY, 


«  )      :    '    ^ 


PART     I. 

SINGLE    ENTRY, 


INTRODUCTION. 


Ik  getting  at  the  true  basis  of  a  science,  it  is  well,  if  possible, 
to  follow  the  line  of  its  history,  and  become  familiar  with  the 
order  and  processes  of  its  development.  This  is  especially  true  of 
Book-keeping,  for  although  it  is  purely  a  branch  of  mathematics, 
and  as  such  entitled  to  the  favor  and  consideration  of  scientific 
men,  yet  at  no  period  of  its  history  has  it  ranked  in  the  estimation 
of  scholars,  with  the  more  complex  and  abstract  sciences.  It  is 
lamentably  true  that  men  will  grow  enthusiastic  over  the  solution 
of  a  problem  in  Euclid,  or  the  efifect  of  a  combination  of  move- 
ments upon  a  chess-board,  who  are  ignorant  of  the  first  principles 
of  this  the  most  beautiful  and  practical  of  sciences  ;  and  are  con- 
tent to  pass  through  life,  receiving  and  appropriating  the  reputa- 
tion belonging  to  men  of  science  and  erudition,  while  they  are 
consciously  unable  to  decide  the  simplest  question  in  partnership 
settlements,  or  to  appreciate  the  theory  of  debits  and  credits  which 
lie  at  the  basis  of  Book-keeping. 

It  is  difficult  to  account  for  these  facts  except  upon  the  ground 
that  Book-keeping  is  too  practical  a  science,  and  has  too  much 
"  the  smell  of  the  shop."  Whatever  the  reasons  may  be,  the  fact 
is  that  not  enough  interest  has  been  felt  in  the  subject  to  trace  its 
history,  which,  therefore,  must  be  inferred  rather  than  compiled. 

The  prime  condition  of  life  is  want,  and  the  plans  and  pur- 
poses of   life  aim   at  supplying   want.       This   necessity  begets 

11 


INTRODUCTIOJir. 

industry  and  'frugality,  and  lays  the  foundation  of  progress  in 
arics  and  civilization^ 

.  ;  To,  s^ippjj  I  the  necessities  of  life  the  earth,  through  toil,  is 
iiiade  fcd  yield  her  abundance,  and  the  yarious  channels  of  enter* 
prise  and  skill  are  laid  open. 

The  wants  of  man  are  so  numerous,  and  the  means  of  supply^ 
ing  them  so  various,  that  a  system  of  mutual  dependence  and 
^reciprocal  labor  becomes  not  only  economical,  but  essential ;  and 
thus,  from  the  very  beginning  of  human  economy  has  there 
existed  the  necessity  of  a  division  and  classification  of  labor  and 
wealth. 

The  farmer,  whose  products  supply  hunger ;  the  manufacturer 
of  fabrics  whicii  are  to  clothe  the  body;  the  artificer,  whose  work- 
manship gratifies  the  more  refined  wants ;  the  man  of  science, 
who  contributes  to  the  mind ;  the  spiritual  teacher,  who  ministers 
to  the  higher  moral  faculties,  and  the  common  laborer,  who  does 
the  drudgery  of  life,  are  each  dependent  upon  all  the  others  for 
the  sum  of  material  and  intellectual  comforts  which  minister  to 
their  wants ;  and  a  mutual  exchange  of  these  comforts  constitutes 
the  foundation  principle  and  impulse  of  the  system  of  economy 
which  we  call  Business. 

To  facilitate  these  exchanges  it  is  found  necessary  to  establish 
some  standard  of  value  by  which  the  relative  worth  of  commodi- 
ties and  services  may  be  adjusted.  The  standard  accepted  by 
most  civilized  nations  is  gold  and  silver,  which  are  coined  in  con- 
venient particles  and  become  the  medium  of  exchange. 

The  particular  necessity  of  Book-keeping  is  to  preserve  a 
record  of  such  exchanges  as  would  otherwise  be  trusted  to  mem- 
ory; although  its  ultimate  purpose  embraces  other  important 
results.    Its  simpler  purposes  are  here  shown. 

For  example,  John  Smith  is  a  farmer,  and  Thomas  Jones  a 
manufacturer ;  John  raises  as  much  food  on  his  farm  as  is 
necessary  to  supply  his  own  wants  and  those  of  his  neighbor, 
while  Thomas  makes  clothing  sufficient  for  the  demands  of  both. 
It  is  now  the  easiest  thing  in  the  world  for  both  John  and 
Thomas  to  have  food  and  clothing,  simply  by  exchanging  with 
each  other  their  surplus  products.  An  exchange  of  this  kind 
would  need  no  record ;  and  were  this  the  extent  to  which  com- 

12 


INTRODUCTION. 

merce  had  been  carried,  it  is  not  likely  that  obstinate  brains 
would  have  been  puzzled  with  the  dry  formulas  of  Book-keeping. 
But  suppose,  further,  that  Thomas  should  happen  to  be  in  iinyne- 
diate  want  of  some  of  his  neighbor's  surplus  food,  without  the 
ability,  at  the  time,  to  render  an  equivalent  in  his  own  products. 
He  says  to  John,  "  I  want  food,  and  cannot  pay  for  it  now,  but 
if  you  will  trust  me,  I  will  return  you  an  equivalent  when  I  have 
completed  work  now  in  progress."  The  conditions  being  satis- 
factory, the  food  is  conveyed  from  John  to  Thomas,  and  the 
promise  from  Thomas  to  John.  If  John  is  blessed  with  a  faith- 
ful memory  he  may  be  able  to  retain  the  facts  connected  with  this 
transaction,  and  thus  constantly  bear  in  mind  that  he  owns  a  cer- 
tain quantity  of  clothing,  which  his  neighbor  is  to  bring  him  at  a 
stated  time.  But  suppose  he  is  not  willing  to  trust  to  his  own 
memory,  nor  to  that  of  his  neighbor,  but  desires  something  tangi- 
ble which  shall  at  least  represent  this  prospective  property — a 
record  which  will  not  fade  with  the  memory,  but  will  stand  for 
the  benefit  of  whom  it  may  concern,  even  in  the  absence  of  those 
having  a  personal  knowledge  of  the  facts.  The  person  relied 
upon  to  fulfill  this  promise  is  Thomas  Jones,  and  the  most  natural 
form  of  record  would  be  to  write  his  name  in  a  book  kept  for  that 
purpose,  and  state  the  fact  underneath  it,  thus: 

THOMAS  JONES. 

Bought  of  John  Smith,  a  quantity  of.  food,  valued  at  Ten  Dollars,  for 
wliicli  lie  agrees  to  pay  a  quantity  of  clothing  of  equal  value,  on  [naming  the 
date  of  payment.] 

A  record  like  the  above  would  be  intelligible  as  containing  all 
the  facts,  and  affording  to  John  Smith  a  tangible  evidence  of  prop- 
erty which  he  owns,  but  which  is  in  the  hands  of  another  party; 
8  id  if  this  single  transaction  comprised  all  of  this  nature  it  would 
scarcely  be  worth  while  to  attempt  a  more  concise  or  symmetrical 
record.  But  as  dealings  of  this  kind  may  be  very  frequent,  not 
only  with  Thomas  Jones,  but  with  other  parties,  it  may  be  well  to 
ascertain  if  some  more  satisfactory  and  less  cumbrous  method  may 
not  be  adopted. 

The  simple  fact  expressed  in  the  foregoing  record  is  that  Thomas 
Jones  02ces  John  Smith  ten  dollars  worth  of  clothing.    The  only 

13 


INTRODUCTION. 

events  which  can  vary  this  fact  are,  the  payment  of  the  debt,  or  a 
part  of  it,  overpaying  it,  or  adding  to  it  by  subsequent  purchase 
without  payment.  There  are,  really,  but  two  conditions,  as  per- 
taining to  persons  with  whom  we  have  deaUngs  on  credit,  viz. : 
that  of  owing,  and  being  owed.  These  two  conditions  are  exact 
counterparts,  and  so  far  a«  they  are  equal,  will  cancel  each  other. 

It  will  therefore  be  easy  to  arrange  these  opposite  facts  under 
the  names  to  which  they  pertain  in  such  way  as  that  not  only  the 
facts  themselves,  but  their  relative  results,  may  be  ascertained  at 
a  glance.     For  example : 


Dr. 

Date, 


Thomas  Jones. 

Dot's.      Cts,  Date. 


Wt  owe  Atnu 


Doll,.    Ofc 


1878 
Jan. 

Mar. 


To  1  Bbl.  Flour,   . 
"  10  Bush.  Wheat, 


50 


1878 
Jan. 

Apr. 


By  4  yds.  Cloth, 
"  Cash,  ,    ,    . 


This  form  has  been  found  by  experience  to  be  both  compre- 
hensive and  practical.  It  is  called  an  account,  and,  as  will  be 
readily  seen,  is  a  statement  of  dealings  with  Thomas  Jones. 
On  one  side  are  arranged  the  separate  amounts  of  his  indebted- 
ness to  us,  and  on  the  other  of  our  indebtedness  to  him.  The 
difference  or  result  will  be  a  net  amount  owing  either  to  us  from 
Thomas  Jones,  or  to  Thomas  Jones  from  us.  In  other  words,  if 
Thomas  Jones  owes  us  more  than  we  owe  him,  the  indebtedness  is 
in  our  favor,  and  may  be  reckoned  as  a  part  of  our  property;  while, 
if  we  owe  him  more  than  he  owes  us,  the  indebtedness  is  in  his 
favor,  and  should  be  reckoned  among  our  debts.  The  facts  shown 
in  the  account  given  may  be  thus  analyzed :  On  the  first  of 
January  Thomas  Jones  purchased  of  us  1  barrel  of  flour  at  110; 
and  on  the  15th  of  January,  sold  us  4  yards  of  cloth  for  enough 
to  cancel  the  debt.  The  amounts  on  the  opposite  sides  of  the 
account  will  now  exactly  balance  each  other,  and  the  result  is 
the  same  as  though  the  exchange  had  been  made  at  once.  Again, 
on  the  first  of  March  he  purchased  10  bushels  of  wheat,  for  $12.50 ; 
and  on  the  first  of  April  pays  us  in  cash  $5.  This  leaves  a  de- 
ficiency in  his  account  of  the  difference  between  $12.50  and  $5 ; 

14 


INTRODUCTIOSr. 

and  we  say  that  Thomas  Jones  owes  us  $7.50.  We  have  thus  a 
tangible  record  of  property,  which  if  left  to  memory  might  be  for- 
gotten, and  we  thus  become  losers. 

It  will  then  appear  that  in  all  cases  where  exchanges  are 
effected  between  parties,  either  of  whom  is  allowed  time  to  per- 
form his  part  of  the  contract,  some  written  record  of  the  facts 
is  necessary.    This  written  record  constitutes  the  germ  of  Book- 

KEEPII^G. 

From  the  foregoing  illustration  it  appears  that  an  account  has 
two  sides,  a  deUor  and  a  creditor  ;  that  upon  the  debtor  side  is 
shown  what  is  owing  to  us,  and  upon  the  creditor  side,  what  is 
owing  bi/  us ;  that  when  the  debtor  side  is  the  larger,  the  difference 
will  express  an  amount  belonging  to  us,  and  when  the  creditor 
side  is  the  larger,  the  difference  will  express  an  amount  which  we 
owe.  In  the  former  case  the  account  would  represent  property  or 
resource  ;  and  in  the  latter,  debt  or  liability. 

In  the  earlier  history  of  Book-keeping,  doubtless  this  form,  or 
something  similar,  was  deemed  sufficient  for  the  purposes  of  trade, 
it  being  absolutely  necessary  to  have  some  written  evidence  only 
of  such  resources  and  liabilities  as  do  not  exist  in  tangible  form, 
and  which  it  would  be  unsafe  to  trust  entirely  to  memory.  It  is 
evident,  however,  that  in  an  extensive  credit  business,  a  book  of 
consecutive  record,  giving  a  plain  and  simple  account  of  the  busi- 
ness as  it  progresses  day  by  day,  would  be  of  essential  service,  and 
it  is,  therefore,  the  almost  universal  practice,  particularly  among 
merchants  and  tradesmen,  to  keep  a  Day-Book  of  some  form, 
in  which  are  written  the  transactions  as  they  occur. 

An  example,  showing  one  form  of  this  book,  and  also  that  of 
the  Ledger,  with  the  transactions  properly  transferred,  Avill  be  seen 
on  the  following  page. 


16 


IKTRODUCTIOK. 

DAY-BOOK. 

J{ew  Yorh,  January  80,  1878. 


Jan. 


Mar. 


30 


John  Smith, 

Dr. 

To  5  yds 

Broadcloth 

.©$4  00 

$20 

"  10  do. 

Cassimere 

.(^ 

1  50 

15 

"  39  do. 

Black  Silk  Dress. 

.(^ 

1  25 

37  50 

"  25  do. 

Flannel 

.(a 

50 

12  50 

"  10  do. 

Figured  Silk 

.@ 

1  50 

15 

John 

Smith, 

Or. 

By  Cash  paid  on  account, 

100 


75 


These  entries,  carried  to  the  Ledger,  which  is  the  Book  of 
Accounts,  would  appear  thus ; 


Dr. 


LEDGER 

John   Smith. 


Cr. 


Jan. 


To  Merchandise. 


100 


Mar. 


By  Cash. 


75 


The  advantages  of  a  Day-Book  are  twofold;  first,  it  affords 
a  regular  daily  history  of  the  business ;  and  next,  by  giving  the 
particulars  and  details  of  each  transaction  in  the  Day-Book,  the 
amount  alone  may  be  carried  to  the  Ledger,  requiring  thus  less 
space,  and  preserving  a  more  symmetrical  form  of  the  Ledger 
accounts. 

The  Day-Book  and  Ledger  in  Single  Entry  contain  only  such 
transactions  as  relate  to  persons.  All  prudent  men,  however,  will 
feel  the  importance  of  having  a  strict  record  kept  of  the  receipts 
and  payments  of  cash  and  other  people's  notes,  and  of  the  issue 
and  redemption  of  their  own  notes.  This  is  done  by  means  of 
books  specially  arranged  for  such  purpose. 

The  following  are  the  most  simple  of  these  forms : 

16 


IKTBODUCTIOI?-. 


CASH     BOOK 


Received. 

Ftiid. 

Jan. 

1 

Amount  on  hand, 

Received  of  James  Monroe,  on  account, 

Paid  Store  Expenses,  as  per  Expense  Book, 

Lent  John  Thompson  for  one  day, 

Received  ofJacob  Schuyler  for  BiU  of  Mdse, 

"  Robert  M.  Hart  "     "          "       

Paid  A.  T.  Stewart  in  full  of  account, 

Received  for  petty  sales,  as  per  Cash  Drawer,     .... 

Balance  on  hand, 

ami 

150 

75 
18 

110 

3sm 

75 
75 

175 
500 

400 

2278 

75 

3353 

75 

2 

Amount  brought  down,    .... 

2278 

75 

BILL    BOOK 

Bills    Receivable. 


No. 

When 
Rec'd. 

Drawer  or 

Endorser. 

Drawee  or 
Maker. 

Date. 

Time. 

When 
Due. 

Amount. 

When  and  How 
disposed  of. 

1 

2 
3 
4 

1879. 

Jan.  1 

"    5 

Feb.l 

"  15 

_ 

Rob't  Mintum, 

Chas.  Hawley, 
AbramDuryea, 
W.  W.  Granger, 

Jas.  Crnikshank, 

David  Woods, 
Duncan  Phyfe, 
Ivison  &  Phinney, 

1878 
Dec.  1 

1879 
Jan.  5 

''  10 
Feb.  15 

60  ds. 

30  ds. 
90  ds. 
60  ds. 

1879 

Feb.  2 

Feb.  7 
Ap.  13 
Ap.  17 

500 

1000 
1500 
300 

1879 

Feb.  2 

Feb.  7 

Paid. 
Paid. 

Bills    Payable. 


Ko. 

When 
Issued. 

Drawer  or 

Endorsei. 

Drawee  or 
Maker. 

Date. 

Time. 

When 
Due. 

Amount. 

When  and  How 
Redeemed. 

1 
2 
3 

1879. 

Jan.  12 
Mar.  1 

Sam'l  Higgins, 
Peter  Cook, 
John  D.  Hinde, 

Ourselves, 
do 
do 

Jan.  12 
Mar.  1 

11    li 

15  da. 
90  da. 
60  da. 

Jan.30 
June  2 
Mays 

150 
750 
300 

1879 

Jan.30 

Paid. 

These  simple  and  suggestive  forms  comprise  the  books  com- 
monly used  in  Single  Entry;  and  are  sufiBcient  for  the  immediate 
demands  of  business  record.  Howeyer,  they  are  but  the  preface 
of  the  multitudinous  appliances  which  may  be  made  useful  in  the 
various  departments  of  business  activity,  and  which,  in  some  meas- 
ure, will  appear  in  the  progressive  steps  of  this  little  book. 

17 


INTRODUCTION. 


QUESTIOlSrS    FOR    REVIEW. 


1.  How  can  the  true  basis  of  any  science  be  best  estimated  ?  2.  Why  is  thi<» 
especially  true  of  Book-keeping  ?  3.  Why  has  Book-keeping  not  usually  been  ranked 
with  abstract  sciences  ?  4.  What  is  the  chief  condition  of  life  ?  5.  What  does  this 
necessity  beget?  6.  How  are  the  necessities  of  life  supplied?  1.  What  system 
grows  out  of  the  numerous  wants  of  man  ?  8.  Name  some  of  the  classes  of  men 
who  are  mutually  dependent  one  upon  the  other  ?  9.  What  constitutes  the  founda- 
tion principle  and  impulse  of  business?  10.  How  are  these  exchanges  facilitated? 
11.  How  is  the  standard  of  value  represented?  12.  What  is  the  particular  neces- 
sity of  Book-keeping  ?  13.  In  the  case  cited  between  John  Smith  and  Thomas 
Jones,  where  the  food  and  clothing  are  simultaneously  exchanged,  is  there  any 
actual  need  of  a  written  record  ?  14.  In  the  case  where  the  payment  of  the  cloth- 
ing is  deferred,  why  is  a  written  record  necessary?  15.  What  is  the  most  natural 
record  of  the  indebtedness  of  Thomas  Jones  in  the  example  given?  16.  Would 
this  record  be  inteUigible  ?  1  *7.  Why  is  a  more  symmetrical  and  concise  record 
necessary?  18.  What  is  the  simple  fact  expressed  in  the  foregoing  record? 
19.  How  may  this  fact  be  varied?  20.  How  many  conditions  are  there  pertaining 
to  dealings  with  persons  on  credit?  21.  How  are  these  conditions  as  compared 
with  each  other?  22.  How  may  these  opposite  facts  be  best  arranged?  23.  What 
is  this  form  caUed?  24.  How  may  it  be  defined  ?  25.  What  facts  are  arranged  on 
either  side  of  an  account  ?  26.  What  is  shown  by  the  difference  between  the  sides 
of  an  account?  21.  Will  you  analyze  the  entries  in  Thomas  Jones'  account? 
28.  In  cases  where  exchanges  are  effected  involving  time  in  their  fulfilment,  what  is 
necessary?  29,  What  does  this  written  record  constitute?  30.  How  many  sides 
has  an  account?  31.  What  are  they  called?  32.  What  is  Bhown.  h j  the  debtor 
side  ?  33,  What  by  the  creditor  side  ?  34.  If  the  debtor  side  be  the  larger,  what 
will  the  difference  express?  35.  What,  if  the  creditor  side  be  the  larger?  36.  What 
will  the  account  represent  in  the  former  case?  37.  What,  in  the  latter?  38.  In 
the  earlier  history  of  Book-keeping  what  form  of  record  was  probably  used? 
89.  Why  was  this  form  alone  sufficient  ?  40.  What  other  forms  become  necessary  in 
an  extensive  credit  business?  41.  What  book  is  usually  kept  by  merchants  and 
tradesmen  ?  42.  What  are  the  advantages  of  a  Day  Book  ?  43.  What  class  of 
transactions  do  the  Day  Book  and  Ledger  in  Single  Entry  contain  ?  44.  What 
otherrecords  will aU  prudent  men  keep ?    45.  How  is  this  done? 


18 


^ET    1. ^INQLE    i^NTRY, 


INTRODUCTORY, 


DAY-BOOK   AND    LEDGER. 


SHOWING   THE   USE   OF   THE   BOOKS,    WITHOUT   EXHIBITING 
A  GENERAL   RESULT. 


IV 


RE  MARKS 


In  the  brief  set  whicli  follows  are  given  the  simplest  forms  of 
Book-keeping— the  Day-Book  and  Ledger.  The  purpose  of  the 
set  is  mainly  to  exhibit  these  books  and,  their  uses,  in  order  that 
they  may  be  fully  understood  in  the  uses  to  which  they  will  here- 
after be  put. 

The  transactions  which  make  up  this  Day-Book  do  not  com- 
prise the  regular  occurrences  of  a  business,  but  only  sufficient 
thereof  to  exhibit  the  form  of  entry ; — hence  no  complete  results 
are  expected. 

The  Day-Book  contains  original  entries  of  such  sales  and  pur- 
chases as  involve  personal  indebtedness,  and  of  payments  of  cash 
or  personal  account.  In  fact,  the  Single  Entry  Day-Book  and  the 
Single  Entry  Ledger  are  used  only  to  exhibit  the  facts  of  personal 
indebtedness.  Any  other  information  concerning  the  business 
must  be  gathered  from  other  sources. 

The  form  of  the  Day-Book  is  simple  and  direct,  first  giving  the 
name  of  the  person  to  be  debited  or  credited,  with  the  fad  of 
"Dr."  or  "Or.",  and  next,  the  detail  of  the  purchase,  sale  or 
payment,  with  the  final  extension  of  the  amount  in  the  propel 
column. 

The  Student  will  first  copy  this  Day-Book  with  much  care, 
then  post  the  items  to  the  Ledger — indicating  in  the  margin  of  the 
Day-Book  the  page  or  number  of  the  Ledger  account; — next, 
construct  a  Day-Book  and  Ledger  of  his  own  from  the  material  in 
the  Practical  Exercises  on  page  26. 

20 


Set  1.] 


Single  Entry— Day- Book,« 

G^^  §^Md,  ^^  /;  /j^/^ 


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21 


Single  Entry— Day -Book. 

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[Set  1. 


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22 


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s^ 


SETi.j  Single  Entry— Ledger, 


v)i^i^4yt  ^^^n^Ad't:^'^. 


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2 


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23 


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Single  Entry— Ledger.  tset  i. 


m. 


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24 


sbtlj  Single  Entry— Ledger. 

9 


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on  aioai. 


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25 


PRACTICAL    EXERCISES. 

[To  be  written  up  after  the  maimer  of  Set  1.} 

Transaction s. — First  Series. 

'•Trt  w.  /.—Sold  J.  L.  Hunt,  on  %,  5  brls.  Flour,  @  $10 Sold  C.  E.  Cady 

25  lbs.  Coffee,  @  10^ ;  15  lbs.  Oolong  Tea,  @  75)^.     Received  cash 

on  %,  $10. 
^.—Bought  of  W.  H.  Sadler,  on  %,  50  bush.  Winter  Apples,  @  W  ; 

100  bush.  "  Early  Rose  "  Potatoes,  @,  $2.50 Sold  R.  P.  Dol- 

bear,  on  %,  3  brls.  Flour,  @  $8.50. 
.?.— Sold  L.  L.  Sprague,  on  %,  5  brls.  "  Pink  Blow "  Potatoes,  @  $2.75 ; 

2  brls.  Apples,  ©  $3. 
^.— Paid  W.  H.  Sadler,  cash,  on  %,  $100 Received  of  L.  L. 

Sprague,  cash,  in  full  of  %,  $ 

»5'.— Bought  of  B.  F.  Willson,  on  %,  5  brls.  Mess  Perk,  @  $18.75. 

^.— Sold  Geo.  Haley,  on  %,  2  brls.  Mesc;  Pork,  @  $20 Sold 

Wallace  P.  Groom,  on  % ,  10  lbs.  Japanese  Tea,  @    97)^ ;  100  lbs. 
Crushed  Sugar,  @  W ;  25  lbs.  Mocha  Coffee,  @  31/-. 
6*.— Sold  G.  E.  Detwiller,  on  «^,  3  firkins  Prime  State  Butter,  210  lbs., 
@  33^.     Received  cash,  on  %  of  same,  $50. 
/<?.— Sold  J.  C.  Miller,  on  %,  3  boxes  Kendall's  Laundry  Soap,  283  lbs., 

@  9,«''. 
//.—Received  of  Wallace  P.  Groom,  cash,  in  full  of  %,  $  


$5.25. 


/^.— Paid  W.  H.  Sadler,  cash,  on  %,  $100. 


QUESTIONS. 

1.  What  books  are  kept  in  Set  1  ?— ^.  What  is  the  object  of  the  Set  ?— 
S.  Are  any  complete  results  exhibited? — 4.  What  facts  are  presented  in  the 
Ledger  ? — 5  What  is  the  purpose  of  the  Day-Book  ? — 6.  What  is  the  form  of 
the  Day-Book  entry  ? — 7.  Wliat  kind  of  information  is  contained  in  the  Single 
Entry  Day-Book  and  Ledger  ? 


a{ 


^ET    2. ^INQLE    i^NTRY. 


RETAIL   DRY   GOODS    BUSINESS. 


DAY-BOOK,  LEDGER,  AND  CASH-BOOK. 


WITH    STATEMENT   OF    FINAL   RESULTS. 


iProsjjeToixa^ 


REMARKS. 

Ix  this  set  we  are  enabled  to  arrive  at  more  perfect  and  satis- 
factory results,  and  to  carry  out  more  fully  the  purpose  of  Book- 
keeping— that  of  exhibiting,  at  any  time,  the  condition  of  thi 
business. 

By  the  use  of  the  Cash  Book  we  compass  a  most  important 
object,  in  keeping  a  check  on  the  receipts  and  disbursements  of 
cash,  and  showing  the  amount  on  hand.  Of  all  the  books  used  in 
business  none  is  more  essential  than  this ;  and  no  cautious  busi- 
ness man  will  ever  attempt  to  do  without  it.  It  is  true,  the 
amount  of  cash  on  hand  may  be  easily  ascertained  at  any  time 
by  counting  it;  but  this  process  affords  no  test  as  to  improper 
expenditures  or  omissions.  A  faithful  record  of  the  receipts  and 
disbursements  of  cash,  however — the  difference  agreeing  with  the 
amount  actually  on  hand — gives  a  degree  of  confidence,  not  only 
in  reference  to  the  cash  transactions,  but  to  the  business  generally, 
which  can  be  secured  in  no  other  manner. 

A  Cash  Book,  properly  kept,  will,  at  any  time,  show  the  amount 
of  cash  on  hand ;  and  for  this  purpose  mainly  is  it  introduced  in 
this  connection.  The  form  here  used,  though  perhaps  not  the 
best  for  general  purposes,  is  extremely  simple  and  easily  under- 
stood. It  is  customary,  in  most  business  houses,  to  close  up  the 
Cash  Book  at  the  end  of  each  business  day,  and  bring  the  balance 
down  as  a  basis  for  the  next  day's  transactions.  We  have  varied 
this  plan  to  better  suit  our  convenience,  closing  up  each  week 
during  the  first  month's  business,  and  only  once  in  the  next 
month.     This  is  deemed  sufficient  for  purposes  of  illustration. 

The  particular  advance  which  is  made  in  this  set  over  the  pre- 
ceding is  more  apparent  in  the  statement  which  follows  the  Cash 
Book,  and  which  will  show,  at  a  glance,  the  real  design  of  Book- 
keeping. 

Nothing  is  more  desirable  in  connection  with  business  record 
than  the  ability  to  exhibit  results  in  a  clear  and  unmistakable 
manner.  To  this  end  the  learner  should  be  taught  to  attach  much 
importance  to  the  statements  given  in  connection  with  the  various 
sets,  and  particularly  to  the  principles  deduced  therefrom. 

28 


SET2.J  Single  Entry— Day -Book. 


C$^      ^^^4       (27^^U^  /y 


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s. 


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ti^^. 


s 


s 


{Lif'^i'V-'tc:!^  c/.     a^y^ 


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29 


Single  Entry— Day -Book. 


[Set  3. 


I  ^<^ 


<Haf^ 


'iu/  ^,    /c^/^ 


r 
^ 

^^^  #^^^^^4 

#« 

0  /laiu  ,^acU'e<i      e/^o.ie, 

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..        /^^ 

/cT^ 

s^ 

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C/ka^a-e^^  ^e^m-'d-ied/, 

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-" 

c%  SSyc/j.  ^/ac/ ^oed/<k, 

@  i'^^ 

^(?(?^ 

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^-y^i^td     (^f'-dee^cA., 

'f.. 

t/^   loadn  on    %, 

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^tz^^ed    Cyvl.-t'Ui'Ci'te^    /yi€^^  -tutj^J^ 

#^. 

c^   7  aox,.    ^^nen    a^cM/d.^ 

@       SSf 

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..  /^^ 

2/00 

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so 

^ezf^ed  '^<z^;<n/i'd-e'/^/0i-e4  -ez-ciu-r^A-teylJ^ 

m. 

7^  ^ad.    c^leticn   ^a/icOf 

@        /JT/^ 

/  00 

/so 

J  (/ox.    Q/a-/t'n^   t^u^-/ond^ 

..      i'^^ 

r^ 

S^ dKec'nd  c^^iW^ 

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ss 

J 

^/ 

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//T 

^^^«^  (f/T  ^^4 

J5. 

c%   /  "Uc/.    ^^c^  unf/ek, 

S  00 

c^uh^f^^t''nad  -/oi    'x/ed'/, 

/so 

s 

so 

30 


[Set  2. 


Single  Entry— Day -Book. 


p. 


//> 


aic/el  aft   ^  i/!  ^ac/aic/,    '/a  ^«/  %, 


-n^ed 


ed.    C^^t^Mz^e 


€.i^. 


sof    /O  00 

JOf      p  00 

S  00 


^  ^  c^^  A.^ 


''^. 


c%  /O  'i^c/if.  <^lenc^  ^loa(/c-M'/n^ 

%  '^  00 

^0  00 

SO   ,,     ^Ue    ^l</^, 

// 

/Jf 

/fso 

SO   ,,      ^a/si    "t^a^i^i^i, 

// 

/sf 

S  ^0 

/S  //      ^a<^</aft  ^a-ma^^^, 

// 

SJf 

J  ^s 

JO   ^,      'l^o'/'/onac/eJ, 

// 

JJf 

PPO 

(f/ia,iJ  ^<i/  ^i,eJ, 

// 

^sf 

^  so 

^. 

c^^    J^o^n, 


^/ 


SO 


s^ 


so 


^/ 


so 


OS 


31 


Single  Entry— Day -Book. 


[Set  2. 


/i'. 


/c/> 


^'^ 


^j 


/-^, 


:?^<2c^       ^^■C'd'yt 


SO 


^y   ^ ad  A  on    %, 


ci^^*^-f3-^   J^.    C/-^€i-yyitzd^ 


oadn  <n.  /-a 


V%, 


Cyd-ei-tic    ^^% 


e^e^nd. 


c% 


//lat'i 


32 


7Sf 

Y  so 

/of 

^0 

^00 

^f 

^^ 

@ 


4. 


00      •  /S  00 
SOf       ^00 

sjf     /  so 


^. 


'4,. 


/  ss 


^7  so 

/  lOO 


Set  2.]  SiNGLE   EnTRY~DaY  -  BoOK. 


5 


^ 

@         i'jT^ 

J  00 

r 

..  y^o 

^2  ^0 

S3 

SO 

S^.  (^.  c/4^^^^^ 

m- 

-^ 

c^    /Oj^^.    ^//.     ^oe,/<n, 

@    /^ 

/^  so 

2,^  //      t^ioto-n  &nee'/<na<i^ 

..          y^f 

S  00 

20  //       ^nec^ ^tnanafHy 

,,          ^^^ 

^  00 

2S 

SO 

(^i:i^e^/d^    C^A^i-c/ed   S^  ^-o.^ 

J5. 

^o  "^aj/ 1^^/'/.    on   ^^    foi/J,    on    %, 

2000 

@     i'^)^ 

S  00 

/O  y/        ^iozan          // 

..     ^of 

J  00 

..      /^7 

^  so 

/O 

SO 

!k^-u^-c'c^  Cy.      SaA^^dipL'Pt^ 

m- 

/ 

<%    S'^c/^.    Mioac/cZ^/C, 

@  ^00 

S2  00 

/O   ,,       ^o<ij/*n, 

,,  2  00 

20  00 

/     ^^      e/cc/^'n, 

2  00 

/ 

fii 

soo 

sp 

S^<?.^e^^  ^emiz^'ed-l, 

m. 

y 

<%    /^^^.    ^ie^^  ^^ 

%  2  00 

2S 

33 


o 


Single  Entry— Day -Book. 


[Set  a. 


/. 


/i'. 


20 ^c6.  ^icnon   Q/^ee 


cyd-u^ic   ©^ 


e-ue^t^, 


^y  ^adn  on   yc  ^ 


<:%    6/ia<'u  ^en-Zd   ^l^o^ie, 

/s  _ 


2Sf       /  ^0 
/  00 


d^ci'med     ^^€^'^7. 


^o    /Oyc/^.    ^loac/c-^/,  '  @    ^  00  ^0  00 

^  ,,       ^o^/<n,  ,,    S  00         /2  00 


^u    t^adn  on    %, 


^.. 


c^    -/^^.    £Sea^ei    ^^/^  @    S  00  /2  00 

/  ,,       i/a^,k,  ^   00 

(^tfn'fntnaj jfoi   i^oaiL^   ana     c/e()%,  (f  00 


(7 

34 


^ 


SO 


ss 


S2 


u 


// 


SJ 


SET2.J  Single  Entry— Day -Book. 


/i'. 


/o 


/^ 


/J. 


'>a<)n  ^o  mi'Uince    %, 


^aXi^ 


<i^^e 


soo     /ooo 

S"  00 


@     SS'P      J  ss 

,,   /so       2/00 

/O  00 


S''(Qa^e^/   '%. 


'i. 


c^    /S'^c/j.    ^loac/c/o//,  @   -^  00  -^(TOO 

tac^' ^oej/,n,         ,,2  00  /2  00 


SO 


^9^ad    ^2/e-a^^ 


c%    SO^c/o.    3^loton   if/ee/ikj^,       @         /2f         d'  00 
/O    ,,       Mejec/Mnne/,         „         !/Sf         ^SO 


Tad-n  <n  /■ut't  o. 


%> 


35 


(f/ 


SS 


/s 


s^ 


23 


(fO 


/S 


SS 


so 


Index  to  Ledger. 


[Set  2. 


ct^ei,    o/a'metiy ^ 


a^nA^e/ul  Q/a^ne<f^ 


^emaie^^,    MX^, S' 

^ean,   ^mo<i, /S 


S^ikne^,   ^.    M, ^ 


H 


I  J 


K 


^ttd^,     o/amed    9^^ 


M 


/O 


N 


3^ac/aic/,    <^.    if.,. 


// 


Mc>i^i/^,    ^oc/eJ  ft^o.,    ...        / 


d^eve-fKiy    Q^aacy 6 


<^^o?nad  o5r.     '~u., S 


w 


9^ee-U>c^,    ^'Uiud, 


/ 


X    Y 


36 


Set  2.] 


Single  Entry— Ledger. 
1 


/cf;^ 


^^a 


V 


^ 


c%    i^adn^ 


xyHade,^ 


^000 


Sa^fmii 


^^m^fi^o^^. 


H. 


mp 

mP 

^ti. 

/ 

c^  ty^Ca^e., 

/ 

/^ 

SO 

<J^ti. 

(f 

^^u    Wadn^ 

/ 

/o 

// 

/^ 

//        // 

2 

S 

cf/ 

%y^a^ 

/ 

//        // 

^ 

SS 

so 

// 

/s 

//        // 

420  57 

^ 

430 

57 

M^-       c^/^^^  j^. 


#7 


€^'n^€U. 


c%  ,yficu)e,^ 


^0 


/S'7P 


^0 


c^       ^«<//^ 


^0 


\  SI. 


%^^^; 


ey. 


^S'7P 

mp 

" 

^/li. 

^ 

c%  ,yHMe,, 

/ 

^0 

^tay 

/s 

K^'U.   ^adn^ 

2S 

t/Hay 

i" 

//        // 

^ 

ss 

./^ 

// 

ss 

//        // 

^/ 

ss 

// 

/i* 

//        // 

^ 

s 

ss 

^ 

cf/ 

ss 

= 

cf^ 

^J? 

37 


Single  Entry— Ledger. 


[Set  3. 


c%  tyW:Me.^ 


80 


cfdiZiZ€^    <^/e 


d^iZ€>    ^^i^yu^^nd. 


^s^rp 

"^ 

/<?rp 

^/ii. 

s 

c%  tAcMe., 

/ 

y^ 

^ca'U 

/o 

<^u   ^ajn, 

^ 

SO 

so 

//        // 

30   5  0 

^ 

60 

JO 
50 

^€-^^^i£.  ^^. 


/s'rp 

cf 

So  ,y^c/de.^ 

S 

2^ 

JS 

/S'TP 

/2 

//         // 

/J- 
// 

8 


l^^4^  Lz^^^m€i^ed/.  ^^ 


mp 

/cf^ 

^/u. 

/o 

c%  ^CaUe., 

i" 

^/ 

J^? 

c^^. 

// 

^.^i   ^^^ 

s 

^/ 

^<:? 

%>^cay 

/ 

//        // 

2* 

JT 

55 

50 

38 


Set  2.] 

Single  Entry- 

-Ledger. 

- 

9 

mP 

M7P 

^u. 

/s 

c%  ,y/l(/}e,, 

i^ 

^/ 

SO 

^/h. 

so 

c^  ^«^< 

^ 

so 

// 

/J? 

//        // 

Sy   50 

c/ 

S2 

54 

50 

10 

^.                    dz4md       ^.       ^UdA.                    ^^. 

mp 

^.. 

// 

c%  ^taMe.^ 

i' 

J 

SO 

tAtay 

i7 

//         // 

/ 

37 

75 

i 

11 


/J7^ 

/cf/^ 

^/u. 

// 

:^  ^'joic/ei, 

i' 

^/ 

SO 

^u. 

so 

^u    J^adn, 

J 

so 

// 

i'^ 

ci/c    .yfcf/je., 

J? 

^/ 

OS 

y^lay 

/ 

//        // 

^ 

i35 

so 

05 

12 

.#.             J^X^    j/  ^S^^^W^^^     J^.               ^'^. 

mp 

ym 

^/u. 

^JT 

c%  tAcc/de.^ 

<^ 

/o 

so 

^Ca-u 

S7 

t^  i^cA<^, 

7 

/S" 

t/Hay 

i»(^ 

//        // 

^ 

5  0 

39 


^■t. 


Single  Entry— Ledger. 

13 


[Set  2. 


mp 


,yfca' 


c%  ,y^CMe, 


/J 


so 


SO 


■)adn. 


JJ 


SJ 


4,. 


14 


'.      ^^ 


nize^. 


P 

C^    xy^lMe. 

■ 

p 

^^ 

// 

ss 

//       // 

/ 

^0 

6  9 

6  8 

40 


Set  2.J 


Single  Entry— Cash -Book. 


]€id 


I^eGeived.      (Paid 


/ 

'^'6)'moun<i  on  ^ana^ 

/soo 

xAeceti^ec/ ■/oi  Ae^'/'u  da^  ^ntd  c/ay^ 

^a<c/yoi.  i:nduiance,    ^%  on  ^^000, 
,^i.'(/ (Aayaae  on  ty^Cc/de. ^ 

//s 

ss 

& 

s 

J 

^ 

x/leceti^ea  jf-oi  A&f'/y.  da-^  ^ntj  aa^u^ 

^■ie-tct  ow^  /oi  /ietdonate<z'/iended^ 
u/ate/ /ioi^ei   on    %    ^  -t^a^edy 

£aecetkxec/ /oi  /le'/i^-u  da'^  /^W  e/ay^ 
Kya<a  ea>/i ended  c-^antna  dfoie^ 

t^ece4k^e(/ j/oi  /leA'/u  da^d  '/^<d  e/aju^ 
^a,c//oi   ^eAAel/nedd, 

ss 

/s 

so 

S'S' 

m 

so 

^ 

7 

so 

6- 

KAece4^e(/-/oi  AeAAu  dU'Ud  '/Atd  c/ay^ 
xAecet^ee/ 0/  o/a^ned    (^am/i-u&^O'n    "/c  ^ 

tyate/  C'^i'K  d  da/aiy, 
xAecet^ec/ -/oi  AeAAy  da/ed  i^ntd  c/ay, 

t^cuance  on  Aana^ 

ss 

/s 

so 

S'S 

su/ 

s^ 

^2<r/ 

2S 

cf 

^at'c/j^oi  caiU'aae  -ntiej 

sm 

S'S 

so 

p 

KAece*ve(/-/ol  /leAAu  da^^  AntJ  e/ay, 

^t'cZ/oi  a!^l.ayaae,  ^/   /lotAeiaae, ^S^ 
tyatc/Aol  dno^o  cade^ 

loaUt'ee/  oi^el. 

S/J 

so 

s^/^ 

S'S 

J2 

20 

41 


Single  Entry— Cash  -  Book.         [set2. 

^^^ad^ I^eceived.      (Paid. 


/J7P 

-^^<- 

y 

Mioaa^  ov-ei, 

U/^ 

<S'S 

ss 

w 

/^ 

c/iece<tte(/j/oi  Ae^/u  </«-^  ^^^  <2^^/ 

t^ati^  '^o^-dee/iel   on    % , 
3^<-cvt^e</ jfoi  /le'/'/u  da^^  -/^(d  c/au^ 

/^ 

sso 

/o 

/ 

u 

// 

//o 

soo 

x^ta  on.  ^c/(  0/  S'uln.t'/uie^ 

ss 

/^ 

/^ 

/i' 

Mece<^e</oy'^yica   ^]^ee4c/,   on   %, 
^AeceM^ec/  /oi  /le^/u  da^  ^ntd  </ay 
Mecec'vec/ ^ol  /te'^'/u  da-^  ^^W  (/u'U, 

/s 

/J 

PS' 

/^ 

K>Sot^nce  on  ^ana, 

2SS^ 

^/ 

uys 

JS 

u:/s 

ss 

/J- 

^a^nce  mouoA/  autton, 

tya€(/ ea;!/tiedd  cnaiaed, 

SSS6^ 

c^/ 

/ 

so 

,ya<(/^oi  ^od^aae  d'/wm/id, 

KJaic/ caiAen'/ei j/oi  -le/iatUna,  d'/ole^ 

Mecet'vec/ j/ol  /le'/'/'u  dd^  s^^W  c/au^ 

.Jlece€^e(//oL  /le^/y  dwud  '/ntd  aay, 

KAecet^e(/^ol  Ae^'/y  dai&d  ^ntd  ctay, 

Mecet^ec/ j/ol  /le^'/u  da^  f^ntd  e/a'u, 
Mece<^ec/j/oi  /le'^/u  da^  i^fyed  </a^^ 
3^ecet^ee/  0/  q/.    07.    x^c4aic/ on    %^ 
Mece<vec/ /oi  Ae^'/u  da^  i/ntd  c/au, 

7S 

/ 
s/f 

S'J 

/cf 

m 

// 

so 

/y 

S/0 

so 

i*^ 

so 

m 

cf/ 

t^cttanca  on  ■nana^ 

sm 

^/ 

ss/s 

s^ 

S2/S 

u 

42 


SET2.J  Single  Entry— Cash  -  Book. 


^tzd 


3 


I^eoeived.      (Paid. 


/<r/p 

^/u. 

2^ 

t^a^nce  on  ^anc/, 

,^a<c/yoi    S  '/on<f   "^004  @   /j"  00, 

Mecef^ei/j/ol  /le'^'/u  (fa'^  ^A<^  (/ay, 
Mece^'vec/ j/ol  /ie/Zu  da-u^  /nty  c/ct"^/ 

/OJ 

4/ 

/o 

ss 

ss 

/sp 

n 

^a<c^  ^o/-/ee/cei   on    %, 

/S'O 

SS' 

ss 

/s 

Mece<^uea ^oi  /le/^u  da^  </nt^  c/au^ 

^^ 

2^ 

<yiecet'v^ea  /oi  Ae^-/^^  da^  %AtJ  o(a^ 

/6J 

/^ 

sr 

,^<(/j/oi  /lol/eiaae, 
xAec&c'nec/ /oi  /lew-u  da^d  /ntd  oCay, 

3oa/anca  on  ^an.(/. 

/^S 

cf/ 

/o 

7^ 

SPP2 

/^" 

spps 

rs 

2p 

^a^nce  moMaA/  o/oton, 

tyata    ea^/iiedd    cnaiaed    on     /iocKaae 

,^i(/jfletan'/  on  ,y/tc/de., 
Mecetv-ec/ j/ol  /le'/Zu  dw^  ^ntd  (/ay, 

/o 

24 

so 

7s 

SO 

^Aecei^A(/  o/  Q^med  iJ^/'to-a/ei,   on    "/c , 
Mece<^ue(/ o/  ^.     '^.    ^nomad,    <n  /ci/t, 
3lece<^ec//oi  /ie'//u  dU'/eJ  /ntJ  c/ay, 

-i^a^nce  on  nan(/, 

SO 
40 

/u 

4/s/ 

^0 

4/S^ 

S'S 

4/S^ 

S'S 

43 


Single  Entry— Cash  -  Book.         [set2. 


iZd^. 


I^eoeived.      (Paid. 


/^^ 

tyfcay 

f^w^nce  on  nanc/. 

^/s/ 

^0 

/o 

so 

s 

2000 

/ 

^Aecet^ec/  0/  Q^aac  Q/^et^endy    on    % , 

tya<c/j^ol  €nti. ,  Ky/cc/de.^   ■/lei^an^y  e'^c, , 

^y/ 

cf^ 

SO 

/o 

so 

/2 

/^/^ 

<r<r 

^a^c/on    %    o/ien/, 

^atc/j/oi  calUaae  nde, 
^ece<t^ea  jf^oi  dated  ^n<j  'taeeK^^ 
^Aecet^ee/ 0/  ^.    o/0.    S^tnne-u,    on    %^ 

,^t'c//oi  ^on  0/  c/way^ 

3Pa.c/^ad  /.//, 

SO 

/s 

/^ 

sss 

ss 

/s 

s^ 

// 

/2 

w 

/O 

u 

s/ 

Mecetvec/o/i^uiud  W^ee'U>c4^y  <'n /u/co/ "/c , 

Mecethec/ ju>i  dU'Ud  ^^w  w^ec'^^ 

uAecetk^ec/ 0/  x^.  <>0.  c^t'nney ^  tn  <u-u  0/ % , 

n 

^/ 

ss 

^6 

,ya<(/j^oi  /lod'/aae  d-Za^ind, 

f^atiZ/oi   d'/a'/tonei-u, 
Mecetvec/j/oi  da-^  '//(t^i  -laee^^ 
Mecet'vec/ 0/ J€wod  ^ean^  tn/u-^o^^/cy 

S 

s 

SS' 

s;/s 

n 

SO 

ss 

t^a^nce  on  nana. 

^cf 

SPOS' 

sd 

mo 

mo 

S'S' 

^^amnce  on  nana^ 

spos 

s^ 

44 


STATEMENT. 

The  results  of  the  foregoing  record  will  be  found  condensed  and 
classified  in  the  statement  which  follows.  A  statement  showing 
the  condition  of  a  business  must  of  necessity  exhibit  its  property 
and  debts,  or,  as  usually  expressed,  its  resources  and  liabilities) 
The  sources  from  which  these  facts  are  obtained  in  the  present 
instance,  so  far  as  the  record  goes,  are  the  Ledger  and  the  Cash 
Book — the  former  giving  the  debts  due  to  and  from  the  concern, 
and  the  latter  the  amount  of  cash  in  possession.  The  yalue  of 
unsold  goods  has  to  be  obtained  from  actual  inventory  and  ap- 
praisement, as  is  the  case  in  any  system  of  bookkeeping. 


Resources,  op  Property. . 

1.  From  Ledger  Accounts. — Balances  due  from 

persons. 

James  Campbell. 

David  P.  Johnson, 

Isaac  Stevens, 

Robert  Demarest, - 

James  Atwater, _     .     . 

James  W.  Lusk, 

S.  S.  Packard, 

John  J.  Howell,  Jr., 

Robert  C.  Spencer, 

2.  From  Cash  Book. — Balance  of  Cash  on  hand,  - 

3.  From  Inventory*— Merclmndise  on  hand,    -    - 


Liabilities,  op  Debts 

From  Ledger  Accounts. — Balance  due  Roberts, 
Rhodes  &  Company, 

Worth  at  the  close,    -     .     -     . 
Investment, 

Net  gain,    -    -    .    . 
45 


120 

80 
30 
28 
31 
37 
85 
16 
69 

2908 

1075 


57 
50 

50 

75 
05 
50 


4483 


2000 


2483 
1500 


983 


26 


26 


26 


DEDUCTIONS 

From  the  foregoing  analysis : 
/. — To  ascertain  the  net  capital  at  any  time. 
Subtract  the  sum  of  the  liabilities  from  the  sum  of  the  resources. 
2. — To  ascertain  the  net  gain  during  any  -period. 

Subtract  the  net  worth  at  the  beginning  from  the  net  worth  at  the  close  of 
such  period. 

[And  by  inference  :  — /.  To  ascertain  the  net  insolvency  at  any  time, 
subtract  the  sum  of  the  resources  from  the  sum  of  the  liabilities.  2.  To 
ascertain  the  net  loss  during  any  period,  subtract  the  net  worth  at  the  close 
from  the  net  worth  at  the  beginning  of  such  period.] 


EXAMPLES    FOR    PRACTICE. 

[Let  the  student  make  out  from  these  items  written  statements  corresponding  with  that 
on  the  previous  page.] 

Example  I. — A  merchant  commenced  business  with  a  capital  of  $5000. 
At  the  end  of  the  year  he  gathers  from  his  books  the  following  facts: 
Amount  of  Cash  received,  $15000  ;  Amount  paid  out,  $10500  ;  A.  B.'s  account 
stands,  Dr.  $1500,  Cr.  $1000  ;  C.  D.'s,  Dr.  $4000,  Cr.  $3500  ;  E.  F.'s,  Dr.  $975, 
Cr.  $450  ;  G.  H.'s,  Dr.  $483.75,  Cr.  ^300  ;  Merchandise  on  hand,  as  per 
inventory,  $2750  ;  Amount  owing  to  J.  K.,  $1500. 

Required,  the  net  capital  at  closing,  and  the  net  gain  during  business. 

Example  II. — A.  and  B.  commence  business  with  the  following  resources . 
Cash,  $3000  ;  Notes,  $1500  ;  Merchandise,  $3500 ;  Real  Estate,  $10000 ; 
Balance  due  on  personal  accounts,  $12500.  At  the  end  of  six  months,  their 
resources  and  liabilities  are  as  follows  :  Cash  on  hand,  $1500  ;  Cash  in  Bank, 
$4000  ;  Notes,  $3500  ;  Merchandise,  $3750  ;  Real  Estate,  $15000  :  Due  on 
Personal  Accounts,  $5000. — Amount  due  from  the  firm,  on  their  notes,  $750  ; 
Amount  due  to  persons  on  account,  $1500. 

Required,  the  capital  at  commencing  ;  at  closing  ;  and  the  net  gain. 

Example  III.— A  merchant's  capital  at  beginning  is  $3500.  At  the  close 
of  the  period  for  which  results  are  desired  he  has  property  and  debts  as 
follows  : 

Property.— C2iQ\i,  $1575  ;  J.  L.  Hunt's  note,  $3750  ;  Merchandise,  $4000  ; 
Due  from  persons,  viz. :  A.  C.  Lobeck,  $150  ;  Lottie  Hill,  $175  ;  J.  R.  Bow- 
man, $107.25  ;  W.  J.  Maxwell,  $315. 

Debts.— l^oie  favor  Thomas  Hunter,  $1500;  do.  favor  Henry  Kiddle, 
$3000;  Due  on  personal  %,  viz.:  Rednor  R.  Wood,  $750;  Hugh  Foulke, 
$375  ;  W.  E.  Crocker,  $1375. 

Required,  the  capital  at  the  close,  and  the  net  gain  or  loss. 

46 


PRACTICAL    EXERCISES. 

[To  be  written  up  as  in  Set  2.] 

Transactions.— Second  Series. 

fnly  /. — Commenced  Business  with  Cash  on  hand,  $1500 Bo't  of  Har- 

rison  Scott,  on  %,  50  brls.  Genesee  Flour,  @  $8  ;  2  hhds.  Molasses, 
140  gals.,  @  W  ;  12  boxes  Soap,  @  $4 ;  6  half  chests  Y.  H.  Tea, 

@  $20 Paid  for  stationery  and   sundry  expenses,   $50 

Rec'd  Cash,  for  petty  sales,  $15. 
^.— Sold  J.  W.  Husted,  on  %,  10  brls.  Genesee  Flour,  @  9.25  ;  4  boxes 

Soap,  @  $4.25 Paid  drayage,  $2 Rec'd  Cash  for  petty 

sales,  $50. 
^.— Sold  John  Banks,  on  %,  15  brls.  Flour,  @  $9.50;  3  half  chests 

Tea,  @  $25 Paid  Harrison  Scott,  Cash  on  % ,  $200 Rec'd 

Cash  for  petty  sales,  $75. 
>^.— Bo't  of  Henry  P.  Smith,  on  %,  10  hhds.  Molasses,  1200  gals.,  @ 

h^f  ;  12  boxes  Havana  Sugar,  3750  lbs.,  @  ^f Sold  J.  C.  Hall, 

on  %,  10  gals.  Molasses,  @  75^. ;  1  brl.  Flour,  @  $9 Rec'd 

Cash  for  petty  sales,  $110. 

J.— Sold  Henry  P.  Smith,  on  «^ ,  5  brls.  Flour,  @  $9 Rec'd  Cash 

on  %,  of  John  Banks,  $50 Rec'd  Cash  for  sales  this  day, 

$115.75. 

6, — Paid  Cash  for  stationery,  $5.50 Rec'd  Cash  for  sales  this 

day,  $110.75. 
<§•.— Bo't  of  C.  J.  Judd,  on  ^,  5  brls.  Coffee  Sugar,  1000  lbs.,  @  6^^  ; 

6  hhds.  Molasses,  4000  gals.,  @  50)^ Rec'd  Cash  for  sales 

this  day,  $75.50. 

^.— Paid  Cash  for  clerk  hire,  $50 Rec'd  for  sales  this  day,  $50. 

/6>.— Rec'd  Cash  for  sales  this  day,  $83.30. 

//.—Sold  John  Banks,  on  % ,  10  gals.  Molasses,  @  60^ ;  50  lbs.  Coffee 

Sugar,  @  7^  ;  1  brl.  Flour,  @  $9 Rec'd  Cash  for  sales  this 

day,  $88.50. 

/^.— Paid  C.  J.  Judd,  Cash  on  %,  $500 -Rec'd  Cash  for  sales  this 

day,  $75. 
/^.— Rec'd  Cash  for  sales  this  day,  $117.50. 

/J,— Bo't  of  Thomas  Palmer,  on  %,  3  brls.  Soda  Crackers,  @  $4  20; 
12  boxes  Butter  Crackers,  360  lbs.,  @  6^  ;  40  loaves  Bread,  @  10)^ 

Paid  porterage  in  Cash,  $3 ;   For  cleaning  store,  $5 

Rec'd  Cash  for  sales  this  day,  $123.75. 

/^. — Paid  James  Smith,  Cash  for  repairing  store,  $25  - Sold  Rob't 

Hay  ward,  on   %,  1  brl.  Soda  Crackers,  @  $5 ;    3  boxes  Butter 

Crackers,  90  lbs.,  @  If Rec'd  Cash  for  sales  this  day, 

$97.50. 

47 


QUESTIOiq^S   FOR   REVIEW. 

/7.— Rec'd  Cash  for  sales  this  day,  $125.75. 

/<$*.— Sold  W.  F.  Norman,  on  %,  100  lbs.  Sugar,  @  7^;  50  gals.  Molasses, 

@  60^  ;  60  lbs.  Sugar,  @  If Paid  Smith  &  McDougal  for 

Printing  Circulars,  $5.50 Rec'd  Cash  for  sales  this  day, 

$88.93. 
79, — Paid  Cash  for  postage  stamps,  $3  ;   letter  paper,  $5 Rec'd 

Cash  for  sales  this  day,  $98.37. 
20, — Rec'd  Cash  for  sales  this  day,  $117.95. 
^^.— Rec'd  Cash,  on  % ,  of  John  Banks,  $50 Sold  Robert  Hay 

ward,  on  %,  30  gals.  Molasses,  @  60^ ;  2  h'f  chests  Tea,  @  $25 

Rec'd  Cash  for  sales  this  day,  $84.28. 

^t^.— Rec'd  Cash,  on  %,  of  Rob't  Hayward,  .$30 Rec'd  Cash  for 

sales  this  day,  $75. 
^4.— Sold  J.  C.  Buttre,  on  %,  1  hhd.  Molasses,  75  gals.,  at  mf 

Rec'd  for  sales  this  day,  $65.75. 
^J.— Rec'd  Cash  of  Rob't  Hayward,  in  full  of  %,  $49.30 Rec'd 

Cash  for  sales  this  day,  $78.25. 
^<?.— Rec'd  Cash  for  sales  this  day,  $48.95. 
;^ 7.— Paid  clerk's  salary  in  Cash,  $50 Rec'd  Cash,  on  %,  of  J.  C. 

Hall,  $16.50 Paid  Henry  P.  Smith,  Cash  in  full  of  %,  $780 

Rec'd  Cash  for  sales  this  day,  $81.38 Mdse.  unsold, 

amounts,  per  inventory,  to  $1500. 


QUESTIONS    FOR    REVIEW. 

1.  What  more  perfect  results  are  shown  in  Set  II.  ? — 2.  What  important 
end  is  accomplished  in  keeping  a  Cash  Book  ? — 3.  How  may  the  amount  of 
cash  on  hand  be  ascertained  without  the  use  of  a  Cash  Book  ? — Jf..  What  tests 
are  omitted  if  we  depend  solely  upon  counting  the  cash  ?c— 5.  What  advan- 
tages are  there  in  a  faithful  record  of  receipts  and  disbursements  of  cash  ? — 
G.  What  will  be  shown  at  any  time  by  a  Cash  Book  properly  kept  ? — 7.  How 
often  in  business  is  it  customary  to  close  up  the  Cash  Book  ? — 8.  How  often 
is  the  Cash  Book,  used  in  this  connection,  closed? — d.  What  is  a  desirable 
feature  in  business  record  ? — 10.  From  what  sources  are  the  facts  exhibited 
in  the  Statement  on  page  45  obtained  ? — 11.  What  is  an  indispensable  requi- 
site  to  any  statement  showing  the  condition  of  business  ? — 12.  What  is  the 
rule  for  ascertaining  the  present  worth  of  a  concern  ? — 13.  What,  for  ascer- 
taining the  gain  during  business  ?—14.  How  may  the  net  insolvency  be  found? 
•—IS.  How  the  net  loss  f 


48 


f>ZT    3. ^INQLE    iJNTRY. 


W^HOLESALE  DRY  GOODS  BUSINESS. 


(PARTNERSHIPS 


DAY-BOOK,  LEDGER,  SALES-BOOK,  CASH- 
BOOK,  AND  BILL-BOOK. 

WITH   STATEMENT   OF   AFFAIRS  AT   BEGINNING,  AND   FINAL  RESULTS. 


j^cZverse, 


REMARKS. 

In"  this  set  we  have  enlarged  the  area  of  our  work,  first,  by 
enlarging  our  business,  and  next  by  adding  to  the  variety  of  the 
transactions.  The  feature  of  this  set  consists  principally  in  the 
auxiliary  books.  The  form  of  Cash  Book  here  given  differs  from 
that  in  Set  II.  in  its  arrangement  of  receipts  and  payments.  This 
form  is  the  one  in  common  use,  and  is  better  than  the  other, 
mainly  on  account  of  its  complete  separation  of  these  two  condi- 
tions ;  the  receipts  being  placed  on  one  page,  and  the  payments  on 
the  other.  The  Bill  Book  and  Sales  Book  will  explain  themselves. 
There  are  more  comprehensive  forms  for  the  Bill  Book  in  use,  but 
the  one  here  shown  is  the  common  form,  and  has  the  merit  of  sim- 
plicity and  plainness.  The  Sales  Book  is  an  essential  auxiliary 
for  a  merchant,  particularly  where  any  amount  of  wholesaling  or 
general  credit  business  is  done.  It  is  not  really  necessary  that  the 
credit  sales  should  be  entered  on  the  Day  Book,  as  they  may  easily 
be  posted  from  the  Sales  Book  direct;  but  as  many  merchants 
adopt  the  plan  of  posting  07ily  from  the  Day  Book,  and  as  there 
are  some  very  good  reasons  for  adopting  this  policy,  we  have  here 
given  it  the  preference.  The  initials,  "  D.  B.,"  "  C.  B.,"  and  "  B.  B.," 
in  the  margin  of  the  Sales  Book,  (standing  for  Day  Book,  Cash 
Book,  and  Bill  Book),  will  indicate  the  books  wherein  are  entered 
the  various  resources  received  for  merchandise.  The  Sales  Book 
is  not,  properly  speaking,  a  book  of  results,  and  is  not  consulted 
in  making  up  our  list  of  resources  and  liabilities. 

In  the  former  set  the  result  of  the  business  was  a  gain ;  in 
this  a  loss  has  been  sustained,  which  is  shared  equally  by  the  two 
partners. 

In  writing  up  this  set  let  the  student  observe  the  order  of 
dates  in  the  various  books,  and  complete  the  record  of  each  trans- 
action before  proceeding  to  the  next.  For  example :  On  the  1st 
of  July,  Robert  Van  Schaick  purchased  a  bill  of  goods  for  which 
he  paid  cash.  This  entry  is  first  made  in  the  Sales  Book,  from 
which  the  amount  is  transferred  to  the  Cash  Book,  and  marked 
"  C.  B."  in  the  margin  of  the  Sales  Book.  The  succeeding  entries 
in  the  Sales  Book  are,  in  the  same  manner,  transferred  to  the 
appropriate  books  which  are  indicated  in  the  margin. 

50 


SET3.J  Single  Entry— Day -Book. 


^^ 


^^  / 


s . 


s, 


.^ 


S'oi  i.'n'ued'^ien^  <.h  'Uud*nedJ^   <^^.  : 


u. 


,y^ceicnan(/uiey    ad  /lei  tk^en'/oiy^ 

fmo 

J4/eJ,    aj/<.l   S^^//^oo/, 

/SCO 

^Oifn,    ad  Ael   ^adn  ,^ook^ 

/soo 

^^a^nced  c/ue  on  /leldona/^ accoun%d , 

^f' 

: 

o/o/n   ^    Mnn, 

soo 

c-o,    c^atiuan'Kd^ 

TSO 

fS^i^nxo    juad'^on^ 

c;?/^ 

c^oi.  th'V'ed'/ynen%,   ad  i/^O'UO'tctd 


ift    CAOnton  tyaam 


c%  'uatance  j/^av-ol  o/  a^.    o/&,    ^iuan%^ 


c%  'Ua'^nce  j^avol  of   c/w.   t/0.    ^iuan%, 


c%  'Mt-tance  /^ai^oi  ojf  <7^.    ^.   KAJl-uan%^ 


51 


sooo 
sooo 


^. 


pd^s 


S'OOO 


soo 


TSO 


s^s 


Single  Entry— Day -Book.  [sets. 


^. 


^j 


7j 


P. 


s. 


cf; 


t^u   ^ ad  A  em   %^ 


S 


(^■ez-m^ed.    cy;■a■/^4^d'a4^. 


if 


^u  4n^o(ce  t^oo'/j  ana  Q^oed, 


/  — 


'S. 


c%  'MCto/ ,yfc(/je.   /lei   o/a^  t^ooiK, 


/o 


c%   <^ ad  A  on    %y 


2S0 


^/JT 


/^/ 


^2 


s:^s 


2S 


soo 


^s 


^/ 


52 


SET3.J  Single  Entry— Day -Book. 


tZTMl^^     x/^^i^    ^-^z 


3 


//. 


/> 


/2 


/S 


//. 


/S, 


ad  /lei  oS<Ut^oo^^ 


'ed 
/J 


c%   wadn  on  Alc^a^e   %^ 


K^u  ^adn  on   %, 


SO 


,^u  T^ ad  A  on   %, 


K^y  ^odn  on   %^ 


M 


/ 


€i4^yied- 


c%  4UuoJ^  %yWs^e.   /lel   Q/a-Ud  ^^oo^f, 


m. 


/^ 


/cT^ 


j;^^ 


/^ 


c/Ji^ 


cfi' 


/(^ 


.iT^^ 


cfcf 


53 


Single  Entry— Day -Book.  [set  3. 


^. 


'^Oii^^  t'n  /u^c/  %^ 


/^. 


/^> 


(T, 


//; 


a<u^yi    CJje^€t€.'7^. 


c%  iU^t^  ,y^o^e.   Ae4.   q/cUa)  3§oi^^ 


S/   — 


%. 


54 


^S 


^S 


^/  ss 


-/^/ 


sso 


7^ 


so 


^0 


Set  3.j 


Index  to  Ledger. 


N 


llyan/'/. 


/ 


^e'^en,    o/o^n^^ /S  \ 


^-^/un^    ^ie^n    (Y^^o.^ /^ 


^ean^    tJ^mod, 


// 


^aflvan'Kd^    ^oienj.o^ •/ 


G 


yadvon^  ty'^u>?f'Oy 


S' 


H 


I    J 


K 


^ 


M 


fayn^     CAJet?/. , 


Q 


R 


P 


/J 


u 


w 


X    Y 


55 


Single  Entry— Ledger.  [sbts. 


4.^U€14^. 


/JT 


c%    <^adn, 


7^ 


^ 


'j-ed'/''/, 


\pO7j 


^. 


\    ^   (§Uiu^n.  ^^. 


c%  fJ^ccentance 


/^ 


/^  tnV'ed'f  ^^ 


S'OOO 


&?Jl4^ 


3 


^^^. 


f-^. 


/cf;:^ 

/^^ 

.J-u/y 

/ 

^a/MMM 

/ 

^^^ 

q/u-^ 

s 

<^y   ^adn^ 

2 

no 

/  / 

2p 

//        // 

^ 

2S0 

:= 

^^(^ 

= 

soo 

/4,. 


i^ie^n^^ 


/s'7P 


7S0 


/^ 


^ 


')4. 


^so 


56 


Set  3.J 


Single  Entry— Ledger. 

5 


H. 


srs 


/ 


'^y   ^a 


//J- 


m- 


Stz^nt^d 


6 


4^. 


cy^   tyfcc/je.^ 


^A/A'^,  (^^M^  /  ^^.    <f.. 


/J 


^a   ao-/e, 


J 


s;'j 


s 


y 


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C^.    (^^^^///#    ^^.        ^#. 


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/J7 


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57 


Single  Entry— Ledger.  [sets. 


9 


'4. 


'^<^€^^. 


(^^. 


/ 


c% 


^s 


%^u  coKfn, 


^J 


10 


^OyUn, 


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c%  ,y^e^e.^ 


SJ 


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11 


#2.  c^^^  ^ 


^^4^. 


^^4. 


mp 


/s 


c^  ty/cdtle., 


/<fO 


/S'/p 


S/ 


^ 


so 


12 


^€>i-tH 


^€^e. 


/^7P 


so 


c%  ^Cc/de., 


cTJ^ 


t^y-  cadAy 


so 


58 


Set  3.j 


Single  Entry— Ledger. 

13 


Sa-med'    ^^e^l^^-t^^z. 


SJ 


c%  nyfu/de.^ 


S^ 


14: 


i^^^^^m^ 


€ii 


J.  ^. 


SS 


c%  ^Cc/de., 


c// 


SJ 


15 


^^uc^<n. 


2^ 


c%  %/fcc/<)e., 


2/^ 


SO 


16 


-^' 


^^l^^    C?£.    ^^e^e'i. 


7- 


c// 


c%  ,y/cc/<}e 


/cfi' 


^^ 


c// 


c^^    fSadny 


/^ 


69 


Single  Entry— Sales -Book. 


[Set  3. 


a.7i\ 


fcm  / 


/ 

(^ii^e-i/  W^i^    ^cAiZ€'iz4,^ 

Cash. 

/ 

/20  ,,       (^ianye                 ,, 

@  //f  //i*  /O 
,,    /Of      T  ^0 
,,     P^,f   //^O 

,,    /of      S'OO 

^P 

00 

Sez'^^e<i   ^■aA^a^d-a'T^^ 

On  %. 

S  ca,e^  ^^en'^  ^/<c^^oo^,    S^ /c 

'..@/e  ^-^cTOO 

J     ,,      "^af^/Z           ,,           Jd , 

,    ,,     J,   /OS'OO 

,,     c/,     J/dOO 

/P2 

(Q.    S^.    (^^^^_,                                J^ote  @60  ds. 

P/ueceJ  ^j^m.  "^o-Z^on^,      S^^'O   ,, 

,,  //f     sp^o 

' 

,,  /of       /2  SO 

/OS' 

20 

V 

(§.  m.  <j|.H 

2  /uece<f  Gaa.-^  ^o'/Zon<f,        S'O  -ua^., 

S    ,,  ^A/^i^,     PO  ,, 

On  %. 

@  /sf  ^p  do 

,,    pf      S' SS 
,,    //f      ppO 

^      ,,    ^^aUe^^aWoZ/,  /SO     ,, 

,,  /2f    /^^o 

^2 

^S 

/ 

m  /^  ^^.4 

Cash. 

J  /u'eced  ^ai  ,y/u^uny           S-^ yM. 

@  /Jf     //^J 

S     ,,        ^i^/<a^/e,                a    ,, 

,,  SOf     /2  <rO 

/P 

S'S 

/ 

60 


Set  3.J 


Single  Entry—Sales -Book. 


■tZTl.'l, 


^y^    ^^^X   ^^ 


/    ,,        "^an^oJ,                       SJ  ,,         ,,     /Sf        J  2S 

SJ 

^/ 

y9 

"^^^A^^,,   €^  <^^Z/ ^Zcfl^i^J^      JTote  @90  ds. 

/0/ueceJ  S^ancy.  ^^ken,   /20 ^c/j.,  @   Sjf  ^JO  00 
SO     ,,       "^ioJ/C  ^.ken,    SOO    ,,         ,,      P'l'       /d'OO 

/S  ,,     Sn//  M^k'/j,  SOO  ,,      ,,  SSf     M  00 

Sc/o^.   ^a/mola/^/.Uj,      J^  @  /S  SS          cT/ 00 

/7J 

/.? 

z 

/ 

cZm.€i-J     ^-e-a^^^                                                   On  %. 

S  coj^  -/i^yi  Mio^an^i,        P/u.    @  // J^?   ^/OcTOO 

S     ,,      ^acAej'  (Mcnc/.    /SO ,,     ,,           d'Of      7^00 

/&0 

/r 

Z 

J^eti.  c7(Q.  h//<x/-^u  /'<^i:^/c-e4^-e€.^-a.-cc-7y^         Cash. 

S  ca^.  7^m.  7J^//.  S:/foeJ,  /SO/u.  @  //  00  ^/SO  00 
/  ,,     ^ac/.    yU        ,,         ^cT,,    ,,      /^O         ^S  00 
^/^.    "(^/ec/^/aUeJd^,    ^Oj^c/j.  ,,          ^Sf     SO  00 

/O   ,,      '<^a.n.'^ui/,'^//C.ySO  ,,      ,,          SSi'     JO  00 

sss 

fO 

■/ 

^c'^Za-i   cJi.    (%-i:<:e,                                      On  %. 

^Z 

^/.a.  (^nj,^j/(  S'^eec/,    S/^^</j.,    ,,  ^/  /2         //OSS 

2  ,,    ^.au.'^/C.^Vj,<rO  ,,      ,,        ^Of     JSOO 

S'S 

<r<f 

61 


Single  Entry— Sales -Book. 


[Set  3. 


a-n-'y-^    ^a-vn^  ^^ 


«?<f 


^■ 


^' 


^• 


CD- 


la^tr^-U'j^  /^OJu^J^  JTote  @  6  mos 
S  c/oj,.  (§'/L'/<c  ^oo/i  i^u-Zd,  ^^@  02  JO  0^0  00 

i^  -_ 


/.. 


■ci-j-T^ed 


■C'n.iy'n--ci't'i.e . 


On  %. 


I't^^^  Cyf(Q^c<i^  Cash. 

^ cu^eJ  ^/e^'<^  ^/C<c/^oo-^,  ^S'/ti.  @  // J'O  //J^  00 

J   ,,      "^a^^M  ,,        J^ ,,  ,,     SOO     ^2  00 

/    /,     ^a'/en^^ea//.   ,,         /2  , ,  ,,      S  00     /!^0  00 

/    ,,     ^/<^e^'ifc/foo/(i/Xoe^,^0  ,,  ,,  SO f  ^0  00 

9^ 


Z-^ 


^- 


^A-u^-ced  (7(^ey,<za^  /^j^i-ee-^-audAj^       Gash. 

//uec6  ^//f.    ^oe^/tn,    20j/^c/j.,    @ //J'J'   02S  00 
S/ic^.    ^oUe-i^  ofean^f,       ^0     ,,       ,,  /O  f      ^  00 

ss 


/f^^^^^iZ'm    '^'^■eA.-cL't-c/  /^(y(j2u^tzd-a^7^J .      On  % . 

/f/ccJ.  ^anca^.  ^nj^/ar^t,  2S0^c/j.  @  /O  f  02S  00 

/  ,,      "^un^aJ,  SO  ,,      ,,   /2^f       S^S 

/  ,,      ^ac/c/^kj^,  ^0  ,,      ,,    /Of         ^00 

S  ,,      7P^aa<n,  ^0  ,,      ,,      S'f        ^  SO 


62 


ssp 


/S2 


/OS' 


J/ 


Set  3.3 


Single  Entry— Sales -Book. 


4 


/ 

df^/i^#^^^^^/^^^^C^y,     Gas/.. 

^  m^^  .<^^</'  c^^^  <^*-gj,  pdj^u.  @  /of  ^^/SO 
2  ,,    Mi^  ^oo-^,      M/u.  @  ^/SS      (fO  00 

/    ,,      <f^<c/ ^aaeiJ,          n  ,,    ,,        /SO         S^OO 
9^ 

/^S 

so 

S/icJ.  S^anc^  ^a^<meia,SO^<^.  @  ^/  SS    ^^2  SO 
S  ,,      <ifaco               ,,              ^0    ,,     ,,       /OO       ^0  00 
P  ,,      <P^aic/^<ht^  ,,     S/0    ,,     ,,           20  f     S^  00 
^  ,,      i/'/u/tec/'^a/^ke/,     <^0    ,,     ,,           SO  f    ^0  00 

s/^ 

so 

^r 

^i^^yned-   d^.    ^jza^d^y.^     '                              Cash. 

/a/o^.   S'/e/Za   if/a^,                   /S  @  /f  00  /iV  00 
J,,      ^a/moia/^Zi/<i,               Slf,,      2  SS       S/ 00 
2  ,,       <if^/f  ifcayf,,                        U  ,,           S'S'f     S//S 
J  ,,      ^e^/,.    ^    ^c///,,       S^,,          SSf     /2  (fO 

/JS' 

/s^ 

/i' 

fO 

S'/icJ.  ^ui/ej^  Mec/M<u/,,  SOOj^c^.  @     ///'  //J'  00 

/O  „   ^^^c^<.^X         PO ,,   ,,/00     PO  00 

2  ,,     ^ian<:j/^ 'S/ec/,             S'O,,     „      ^Of      S2  00 

r^/ 

^AiZ^d  0^.   ^ee-t^y.  /(^ixc<4ed/e'tj^    On  %. 

^  cuJ.  y^.  MenAe^  ^oo/<^,  0/u.  @  //  00  ^P^  00 
2  ,,    ^a^.-ej'  Maiej^    ,,        S4,,    ,,     S  00     U  00 
2  ,,    y^^.    'M>n,hn  ^a,/.,  M,,    ,,          cTOf   SS" ^0 

/S'S 

^0 

63 


-ad 


Single  Entry— 

[Set  3. 

Ileoeipts. 


/<r/^ 

^ 

/ 

^ec  V^oi  ^//c/oc.  ,o/^^oif'^  Van  ^/a<h/, 
on  %  ^q/.    M.    Mnn, 

/WO 
^000 

sso 

J' 

/oi  /le^'^u  ^U'Ud, 

// 

so 

/ 

0/ ^J^U>n'x.o    ''^ad'^on,  <'n ^wuc/^/c, 

srs 

cT 

,,  ^^  "^/alZ/ol  y^c/de./^ei  ^^ 

^ 

S'2 

/O 

soo 

/2 

^s 

so 

/6 

0/  ^oienx-a   <:^atL'^anmy    on    % , 

^so 

/cf 

2SS 

^OM 

S'2 

<S'2 

/f 

^^wuince  on  nunc/, 

s^os 

sr 

W 

M^cVon  %  oj^  '^.c/ol  y/.    M<ce, 

^0 

s/ 

,,           ^mocf   ^ean, 

so 

2S 

c/M.  ^^eifcafjfot  ^/c/je.^el  i/",  M 

SM 

S^ 

^Aa  J  li^foe^aon      ^^        ^^       ^^ 

/06 

// 

&.   M   M<ce,   <n/u//o/"/c, 

^2 

^s 

ss 

^^/y  ^a^ed, 

/6'J 

so 

S7 

Q/.^.^anJ^u/ol^//c/je./tel!i/'.^. 

/JS' 

rs 

2^ 

2r  M.    c^^.^./        ,, 

/M 

/ 
/ 

o/o^t  M.    Mnn   <n/u//oy%, 

sso 

s/ 

"(^/a  'j  ^.    ifee/ej^  on    %, 

/^ 

— 

/2^S 

s/ 

<fM 

/-^ 

x^a^nce  on  Aanc/, 

1 

sm 

p-^ 

64 


Cash -Book. 

Set  3.J 


€ld 


(Payments. 


/ 

/(? 
/J 

^ai'c/j!^oi  /iod'/aae  d'/a^n/ij  and/ien<f. 

&.  o/oneJ jifoi  i.e/ia<l.  a^oie  f/iei  c^.J _, 
yie<'^^/  on   ^y//c/je.     /yiei   c^J ^ 

</iO,    ^.    K^i'uan^  on  /lii^w/e  %y 
t^a^nce  on.  ^zanaf^ 

/o 

ss 

/J 

soo 

7^ 

so 

s^os 

2S 

sy 

^OS/f 

S'S 

so 
s/ 

ss 

■ 

<ya<c//oi  acUi-^j'/.   th.   GiJ-e.    o/ouina/, 
^,    /le^/y  ea;/iende<f^ 
'M^ j!^i   cai/ien'/e'i  'vaoi^  f/tei  c^.J^ 

/olaccY^^.^a^.o/^,   ^.  ^^ia-^/on, 
t^a^nce  on  ^ane/^ 

/o 

ss 

/^ 

9^ 

m^ 

P-^ 

- 

65 


O 

pq 

I 

pq 


1"^ 

II 

1 

§j 

111% 

^  ^  >^  ^ 

1 

U 

^ 

v! 

i 

SN  *^  ^   ^  ^ 

s 

N 

5 
i 

1 

8^ 

1 

1' 

1 

1 

N 

4 

II 

•V* 

1 

1? 

^       V     \s     "^     QSi 

1^ 

^' 

V    Q^   "=v^   v^ 

S 

1* 

51 

1 

S 

l«- 

^1 

1 

?,; 

i^^ 

^' 

^'  ^^ 

,53 

^^ 

^1  ^ 

^"^ 

'^)' 

5 
•!«i 

hO 

^ 

\    « 

■§ 

^1 

1 

^' 

^ 

5 

^ 

5 

4^. 

i 

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» 

^■^ 

5! 

1 

^■^1 

1 

^"^ 

'1 
^1 

^' 

V   13^ 

ee 


STATEMENT 

SHOWING  THE  CONDITION  OF  BUSINESS  AT  THE  CLOSE  OF  SET  HI, 


Resources. 

1.  JFVoTTi  Ledger  Accounts : 

Lorenzo  Fairbanks, 

Dr. 

Cr. 

Balance. 

750 
192 

23 
180 

82 
132 

37 
216 
182 

41 

88 
24 
55 
50 
40 

350 

50 
30 

75 

400 
192 

23 
130 

52 
132 

37 
216 
107 

5881 

1620 

3000 
5000 

James  Johiisou,     ..»..••.••• 

Benjamin  Payn, 

41 

Amos  Dean,       

Victor  M.  Rice, 

88 

James  Siieldon, 

24 

William  Shepard,       

55 
50 

John  Belden, 

Chas.  A.  Seeley, 

40 

2.  From  Cash  Book: 

Balance  of  Cash  on  hand, •    . 

94 

3.  From  BUI  Book  : 

S.  S.  Packard's  Note,  due  Sept.  13,      .... 
E.  H.  Bender's     '^       "        "       5,     .... 

.    $1000 
.       108  20 
.       173 
.       339 

Calvin  S.  Sill's    "       "     Oct.    13,      .... 

J.  R.  Morgan's    "       "     Jan.    25,     .... 

20 

4.  From  Inventory : 

Merchandise  unsold, 

Real  Estate, 

Liabilities. 

From  BiU  Book  : 
Note  favor  Claflin,  Mellen  &  Co.,     .    .    .    .    r - 

16794 
575 

12 

Present  CAHTAii, 

16219 

12 

To  ascertain  the  net  loss  of  the  concern,  and  the  present  worth  of  each 
partner,  we  have  the  following  facts : 

H.  B.  Bryant  invested, $9075 

"  drew  out, 75 

Net  investment, $9000 

H.  D.  Stratton  invested, $8000 

**  drew  out, 75 

Net  investment, 7925 

Total  net  investment, $16925 

Deduct  Present  Worth, 16219  12 

Leaves  Net  Loss, $705  88 

H.  B.  Bryant's  original  investment, $9000 

Less  Yi  Net  Loss 352  94 

Leaves  present  investment, £647  06 

H.  D.  Stratton's  original  investment, $7925 

Less  )4  Net  Loss, 352  94 

Leaves  present  investment, 7572  06 

Total  Present  Capital, $16219  12 

67 


EXAMPLES   FOR   PRACTICE. 

From  tlie  foregoing  statement  we  deduce  the  following 
RULES. 

/.—To  ascertain  the  net  loss  during  business,  subtract  the  net  capital  at 
closing  from  the  net  capital  at  commencing » 

2. — To  ascertain  the  net  capital  of  each  partner  at  dosing,  subtract  his 
NET  LOSS  from,  or  add  his  net  gain  to  his  net  investment. 


EXAMPLES    FOR    PRACTICE. 

Example  I. — A.  commenced  business  with  a  cash  capital  of  $8750.  At 
the  close  of  the  year  his  resources  and  liabilities  were  as  follows :  Cash  on 
hand,  $3700  ;  Notes  on  hand,  $7000 ;  Merchandise  unsold,  $2500  ;  Amounts 
owing  on  Personal  Accounts,  $2000. —  He  owes  on  notes,  $5000  ;  To  various 
persons,  $2500. 

What  has  been  his  loss?     What  is  his  net  capital  at  closing? 

Example  II. — E.  and  F.  enter  into  copartnership  on  equal  terms,  each 
investing  at  commencement,  $10000  ;  and  each  withdrawing  during  the 
business,  $1500.  At  the  close  of  a  certain  period  the  following  exhibit 
shows  the  true  condition  of  their  affairs :  Cash  on  hand,  $500  ;  Balance  in 
Bank,  $7000 ;  Due  them  on  Personal  Accounts,  $5783.75,  of  which  $875  is 
worthless ;  Due  them  on  Notes,  $6750 ;  Merchandise  on  hand,  $2700 ;  Real 
Estate,  $5000  ;  Bank  Stock,  $3500.  —  They  owe  to  persons  on  account, 
$10000;  On  Notes,   $5600. 

Have  they  gained  or  lost  in  business,  and  how  muchf  What  is  each  'part- 
ner's net  capital  at  closing  ? 

Example  III. — A.  B.  and  C.  are  partners.  A.  puts  into  the  concern, 
$7500  ;  B.,  $5300;  C,  $4700.  At  the  close  of  the  year  their  books  exhibit 
the  fv^llowing  results ;  John  Smith,  Dr.  $1700,  Cr.  $500 ;  John  Parker,  Dr. 
$1100,  Cr.  $975 ;  Abram  Schenck,  Dr.  $1750,  Cr.  $2700 ;  Albert  Dodge,  Dr. 
$1859.38,  Cr.  $212.50  ;  Cash  received,  $125386.29  ;  Paid  out,  122480.23  ; 
Notes  received,  $1900 ;  Notes  disposed  of.  $1200  ;  Merchandise  unsold, 
$2700;  Value  of  Store  and  Fixtures,  $15750;  A.  has  drawn  out  $2000; 
B ,  $1500  ;  C,  $785.— They  have  issued  Notes  to  the  amount  of  $30000,  of 
which  they  have  redeemed  $25800. 

Required  a  written  statement  which  shall  exhibit  all  these  facts,  as  also  the 
amount  of  gain  or  loss  during  the  business,  and  each  partner's  net  capital  at 
closing. 

68 


PRACTICAL     EXERCISES. 

[To  be  written  up  after  the  manner  of  Set  3.] 

Transactions. — Third  Series. 

JTiely  /. — S.  S.  Packard  and  John  R.  Penn  have  engaged  in  a  general  mer- 
chandise  business,  the  gains  and  losses  of  which  they  agree  to  share 
equally.  S.  S.  Packard  invests  Cash,  $4000 ;  Merchandise,  $1750  ; 
Notes,  as  follows :  one  for  $500,  in  favor  of  S.  S.  P.,  signed  by  H. 
B.  Bryant,  and  endorsed  by  W,  P.  Spencer,  dated  June  1,  @  60  ds.; 
and  one  for  $700,  an  accepted  draft,  drawn  by  L.  S.  Bliss  on 
George  Claghorn,  May  1,  at  90  ds.  sight,  and  accepted  May  3, 
Personal  Accounts,  as  follows ;  Henry  Fish,  $500 ;  Robert  Fulton, 
$750  ;  David  Coleman,  $900.  John  R.  Penn  invests,  Cash,  $500 ; 
Real  Estate,  $5000. 

^.— Sold  N.  Frederick,  on  %,  2  doz.  Gent's  Silk  Handkerchiefs,  24, 
@  40f ;  6  pes.  Amoskeag  Sheeting,  130  yds.,  @  lOf^ ;  4  do.  Mixed 

Cassimeres,  100  yds.,  @  50^ Rec'd  Cash  of  Henry  Fish,  in  full 

of  % ,  $500 Paid  Cash  for  Stationery  and  Printing,  $30. 

S, — Sold  Ira  Packard  on  his  acceptance,  at  10  days,  1  case  Child's 
Metallic  Tip  Shoes,  60  prs. ,  @  50^  ;  2  do.  Child's  Heel  Gaiters,  96 
prs  ,  @  63/' ;  3  pes.  English  Tweed,  27  yds.,  @  $1. 

4-. — Sold  Wm.  T.  Bush,  on  ^,  4  cases  Men's  Congress  Gaiters,  96  prs., 

@  $1.50 ;  2  do.  Gent's  Canada  Ties,  24  prs.,  @  $1.75 Sold  James 

Magoon,  for  Cash,  1  piece  Striped  Velvet,  10  yds.,  @  $5 ;  6  do. 
Paper  Cambrics,  72  yds.,  @  8f ;  10  do.  Lynn  Cottons,  300  yds., 
at  11^. 

6, — Paid  Cash  for  petty  Expenses,  $3.75 Sold  Robert  Smith,  on  his 

note  at  60  days,  3  pes.  Lancaster  Gingham,  125  yds.,  @  10/  ;  6  do, 

Scotch  Plaid,  240  yds.,  @  13/ Bought  of  Star,  Barnum  &  Seeley, 

Invoice  of  Merchandise,  amounting  to  $5000 ;  paid  Cash,  $2500 ; 
Note,  at  6  months,  $2500. 

^.— Rec'd  Cash  on  %  of  David  Coleman,  $500 Sold  Roger  Williams, 

for  Cash,  1  case  Misses  Cork  Sole  Shoes,  60  prs.,  @  75/ ;  1  do. 

Gent's  Paris  Gaiters,  24  prs.,  @  $1.75 Rec'd  Cash  for  petty 

Sales,  $25.50. 

7.— Sold  John  Fitch,  on  ^,  3  doz.  Elastic  Hoop  Skirts,  36,  @  $2.50; 
1  doz.  "Empress"  do.,  12,  @  $2 ;  3  pes.  Check  Marseilles,  30  yds., 

@  50/ Sold  Samuel  Nash,  for  Cash,  3  pes.  English  Tweed,  27 

yds.,  @  $1 ;  6  do.  Corduroy,  250  yds.,  @  75/ Rec'd  Cash  of 

Wm.  T.  Bush,  on  %,  $50. 

^.— Paid  John  R.  Penn,  Cash  on  private  %,$100 Paid  Cash  fol 

petty  Expenses,  $7.50. 

69 


EXERCISES  FOR  THE  LEARli^-EE. 


10, 

f2.— 

13.- 
U.- 
16,- 

17^- 
20,- 

21.- 


Sold  Jolin  Anderson,  for  Cash,  3  cases  Ladies'  Extra  Balmoral 
Boots,  144  prs.,  at  $2;  2  cases  Ladies'  "Opera"  Gaiters,  48,  @ 
$1.75. 

Paid  S.  S.  Packard,  Cash  on  private  %,  $75 Sold  Tlios.  Hun- 
ter, on  %,  6  pes.  Merrimack  Prints,  210  yds.,  @  9;^;  5  do.  "  Union" 
Prints,  150  yds.,  @  8/;  7  do.  Lancaster  Prints,  244  yds.,  @  S^f; 


@8i 


Eec'd  Cash  for  petty 


4  do.  Orange  Prints,  120  yds. 
Sales,  $10.38. 

-Rec'd  Cash  of  David  Coleman,  in  full  of  %,  $400 Sold  John 

Howard,  on  %,  3  pes.  Lancaster  Gingham,  125  yds.,  @  10(^ ;  2  do, 
French  Merino,  40  yds.,  @  50/- ;  5  do.  Bar.  Muslin,  90  yds.,  @  14^. 
-Sold  Robert  Coons,  for  Cash,  6  pes.  Fancy  Linens,  36  yds.,  @  $2 ; 

5  do.  English  Prints,  200  yds.,  @  20!^ ;  6  do.  Parametta  (Maroon), 
300  yds.,  @  75^ Paid  Cash  for  Repairing  Store,  $75. 

-Rec'd  Cash  of  John  Fitch,  in  full  of  %,  $129 Sold  Henry 

Fish,  on  %,  5  pes.  Amoskeag  Stripes,  120  yds.,  (w  12|/ ;  4  do. 
Pepperell  Sheeting,  160  yds.,  @  10^ ;  4  do.  Auburn  Sheeting,  120 
yds.,  @  15^. 

-Rec'd  Cash  in  full  of  Robert  Fulton's  % ,  $750 Sold  Simon 

Walker,  on  his  note  at  60  days,  4  cases  Men's  Thick  Boots,  48  prs., 
@  $1.25  ;  2  do.  Double-Soled  Boots,  24  prs.,  @  $1.50. 
-Sold  Geo.  F.  Smith,  for  Cash,  2  cases  Women's  Walking  Shoes, 
120  prs.,  @  50^  ;  2  do.  Jenny  Lind  Gaiters,  24  prs.,  @  $1.15  ;  2  do. 

"  Opera  "  Gaiters,  24  prs.,  @  $1.75 Paid  Clerk  hii-e  in  Cash. 

$65. 
-Rec'd  Cash  of  Henry  Fish,  in  full  of  %,  $49. 


Statement   of   Results. 

The  general  results  of  the  above  transactions  properly  recorded  are  shown 
In  the  following  schedule.  The  statement  to  be  rendered  by  the  student 
should  be  more  in  detail,  taking  as  an  example  the  statement  on  page  67. 


Resources. 

Personal  Accounts 

Notes?,  receivable 

Cash 

315 
1457 
5286 
4500 
5000 

365 

54 
18 
49 

79 

Liabilities. 

Notes,  payable 

S.  S.  P.'s  Net  Investment  .    . 
J.  R.  P.'s 

2500 
9025 
5400 

Merchandise  (per  Inv.)    .    .    . 

Real  Estate 

Net  Loss 

16925 

16925 

70 


P^T    4. ^INQLE    ^NTRY. 


FURNITURE  AND  CABINET  BUSINESS. 


(TWO   PARTNERS,  ADMITTING  A  THIRD.) 


DAY-BOOK,  SALES-BOOK,  LEDGER,  CASH' 
BOOK,  AND  TIME-BOOK. 

USING   THE   SALES-BOOK   AS    PRINCIPAL    BOOK,    AND   GIVING 
INSTRUCTIONS   AS   TO   A   CHANGE    IN    BUSINESS. 


^rosperoTZS. 


71 


REMARKS. 

The  capabilities  of  Single  Entry  Book-keeping  are  fairly  pre> 
sented  in  this  set,  and  it  will  be  found  that  this  form  of  record 
has  much  in  it  worthy  of  consideration.  At  the  best,  however, 
Single  Entry  is  an  incomplete  system,  and  has  no  advantages  over 
Double  Entry;  while,  on  the  other  hand.  Double  Entry,  retaining 
all  that  is  vital  in  Single  Entry,  supplements  its  best  achievements 
by  such  results,  tests,  and  statistical  facts  as  are  essential  to  a  com- 
plete knowledge  of  business  operations. 

However,  as  Single  Entry  Book-keeping  is  in  vogue,  and  as  it 
will  continue  to  be,  even  in  some  of  the  most  reputable  houses,  it 
behooves  the  accountant  to  become  conversant  with  its  character- 
istics and  its  possibilities. 

The  materials  from  which  the  transactions  in  this  set.  are  con- 
structed, were  obtained  from  an  extensive  cabinet  warehouse  in 
New  York,  and  the  routine  has  the  merit,  at  least,  of  being  busi- 
ness-like. The  forms  of  the  books,  and  arrangement  of  the  various 
records,  are  submitted  as  the  most  simple  and  practical  in  use. 

One  important  feature  in  the  set  is  the  use  of  the  Sales-Book 
distinct  from  the  Day-Book.  In  Set  III.,  although  a  Sales-Book  is 
used,  all  sales  on  credit  are  first  transferred  to  the  Day-Book,  and 
from  thence  posted  into  the  Ledger.  Here,  however,  the  credit 
sales  are  posted  to  the  personal  accounts  directly  from  the  Sales 
Booh.  This  affords  a  great  saving  of  time,  and  is,  in  all  respects, 
quite  as  satisfactory.  The  figures  in  the  margin  of  the  Sales-Book 
refer  to  the  Ledger  page  to  which  the  amounts  are  posted ;  the 
initials  "  0.  ai."  and  "  B.  B."  indicate  that  the  result  of  the  sales 
thus  marked,  are  shown  in  the  Cash  Book  and  Bill  Book.  The 
former  of  these  is  exhibited  at  length ;  the  latter  has  been  omitted, 
although  it  is  expected  that  the  learner  will  supply  it,  after  the 
form  given  in  Set  HL 

72 


REMARKS. 

The  taking  in  of  a  new  partner  forms  another  important  feature 
of  the  set,  and  one  which  will  afford  the  learner  some  of  the  most 
valuable  hints  connected  with  Accounts.  It  is  a  settled  principle 
in  Book-keeping,  or  should  be,  that  whenever  any  change  in  the 
business  occurs,  the  existing  resources  and  liabilities  of  the  concern 
should  be  made  apparent;  and,  consequently,  the  proprietors' 
accounts  should  represent  their  net  investment  at  the  time  of  tlie> 
iJiange,  The  same  rule  holds  good  respecting  the  landmarks  ol 
business,  or  the  financial  eras,  such  as  the  close  of  a  fiscal  year,  or 
any  important  event  which  makes  it  necessary  to  exhibit  on  the 
main  books  the  exact  condition  of  the  business. 

In  the  case  under  consideration,  the  existing  partners,  "  Lester 
&  Brown,"  propose  to  admit  a  new  partner,  who  shall  invest 
equally  with  them,  and  share  equally  in  the  gains  and  losses..  The 
partners'  accounts  now  show  only  their  original  investment ; 
and  it  will  be  evident  that,  if  the  new  partner  invests  an  equal 
amount,  he  will  unjustly  become  a  Joint-partner  in  the  gains 
which  have  already  accrued,  but  which  remain  unacknowledged  in 
the  business.  The  original  partners,  it  is  plain,  are  entitled  to  all 
the  avails  of  the  business  previous  to  admitting  the  new  partner, 
and  if  their  own  proper  accounts  do  not  show  what  this  net  amount 
is,  they  should  be  made  to.  Therefore,  before  deciding  how  much 
the  new  partner  should  invest  to  place  him  on  an  equal  footing 
with  his  associates,  it  becomes  necessary  to  credit  the  original 
partners  with  their  respective  gains.  With  this  view  the  state- 
ment on  the  third  page  of  the  Day-Book  is  made,  and  the  part- 
ners thereafter  credited,  each  with  his  net  gain.  The  partners' 
accounts  in  the  Ledger  are  then  closed  up,  and  the  balances 
brought  down  as  a  new  capital,  which  is  an  indication  of  the 
amount  that  the  new  partner  must  invest. 

The  general  statement  which  follows  this  set  afibrds,  perhaps," 
LS  convenient  a  form  for  such  statements  as  any  in  use.  The 
student  cannot  too  carefully  study  the  philosophy  of  these,  nor  be 
too  particular  in  drawing  them  up,  as  to  their  neatness  and  per- 
spicuity. An  obscure  or  insufficient  statement  of  a  business,  how- 
ever prosperous  and  satisfactory  may  be  the  condition  which  it 
aims  to  show,  is  like  a  good  story  so  bunglingly  told  that  its  chief 
points  are  obscured,  and  its  moral  entirely  lost  sight  of. 


73 


Single  Entry— Day -Book.  set4.j 


A/O^MfTl^    QzmU'l  /, 


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90 


STAT  EM  ENT 

SHOWING   THE  CONDITION   OF  THE  BUSINESS  MAT  31. 

The  following  Statement  is  in  most  respects  like  those  which 
have  preceded  it ;  the  only  difference  being  in  the  form  of  express- 
ing the  gains.  The  gains  are  obtained  in  the  usual  way,  but  tho, 
statement  gives  the^;roo/in  the  form  of  addition,  rather  than  the 
process  by  subtraction.  The  sum  of  these  amounts,  or  the  total 
present  worth,  must,  of  course,  equal  the  sum  of  the  resources. 


Resources. , , 

1.  From  Ledger  Accounts. — Balances  due : 

A.  A.  Low, 

H.  W.  Clark, 

R.  Bannister,  --- 

Joseph  Brooks, 

Central  Bank, _     .     . 

Steamer  Isaac  Newton, 

2.  From  Gash  Book. — Balance  of  Cash  on  hand,  -    - 

3.  From  Bill  Book. — Notes  on  hand, 

4.  From  Inventory. — Valuation  of  Property, 

Finished  Stock  on  hand,    -     -     - 

Unfinished, _._-__ 

Tools  and  Implements, 

LiabiHties. 

P.  Jones'  note, 

James  Lester's  Investment,     .    -     -    -     $6753  44 

I  Net  Gain,      -     -     .     -     -    187  73 
"  "        Present  Worth,     .    .    .    . 

Robert  Brown's  Investment,  -  .  .  .  $6753  44 
1  Net  Gain,  -  -  -  -  -  187  73 
Present  Worth,     -    -    -    - 

Robert  Lincoln's  Investment,  -  .  .  .  $6753  44 
\  Net  gain,  ...  -  -  187  74 
Present  Worth,  .... 


91 


825 

56 

57 

36 

12000 

455 

503 

1016 


4750 

875 
500 


350 


6941 


6941 


6941 


02 
50 


17 


17 


18 


21073 


21073 


52 


52 


EXAMPLES    FOR    PRACTICE. 

Example  I. — A.  and  B.  are  equal  partners,  investing  each  $10000.  At  the 
end  of  a  year  they  desire  to  take  C.  into  co-partnership  upon  condition  that  he 
will  invest  equally  with  them,  and  share  equally  in  the  results  of  the  busi- 
ness.   The  following  is  a  statement  of  their  affairs  previous  to  uniting  with  C. 

Personal  Accounts:  John  Jones,  Dr.  $1500,  Cr.  $700;  Robert  Fulton 
Dr.  $5000 ;  James  Webb,  Dr.  $1750,  Cr.  $1000  ;  Clarence  Shook,  Dr.  $5000 
Cr.  $2500  ;  Lewis  Lyman,  Cr.  $4000,  Dr.  $3000 ;  W.  F.  Norman,  Cr.  $2000, 
Dr.  $1500  ;  Merchandise  unsold,  $7500  ;  Notes  on  hand,  $6000  ;  Notes  out 
standing,  $2500 ;  Cash  on  hand,  $2000. 

Required  a  statement  showing  the  gain  or  loss  during  business,  and  the  net 
capital  of  each  partner  at  closing. 

Example  II. —  C.  and  D.  enter  into  co-partnership,  C.  to  furnish  the 
capital,  and  D.  to  devote  his  time  to  the  business — gains  and  losses  to  be 
divided  equally.  C.  invests  $10000,  and  during  the  year  withdraws  $2000. 
D.  withdraws  $1500.  At  the  close  of  the  year,  they  have :  Cash,  $3000 ; 
Personal  accounts,  $1500  ;  Merchandise,  $10000 ;  Notes,  $1750 ;  they  owe, 
on  notes  and  personal  accounts,  $5000. 

What  is  the  gain  or  loss  in  business?  What  is  each  partner's  capital  at 
closing  ? 

Example  III. — J.  and  K.  enter  into  co-partnership  for  the  purpose  of 
conducting  a  Building  business;  each  to  receive  interest  at  7%  on  his  net 
investment,  and  the  gain  or  loss  to  be  divided  equally.  J.  invests :  Materials 
and  Implements,  $5000  ;  Unfinished  contracts,  $6750  ;  Notes,  $4800  ;  Personal 
accounts,  $10000 ;  and  the  firm  assume  to  pay  for  him  a  liability  of  $1000. 
K.  invests :  Cash,  $10000 ;  Notes,  $15000.  At  the  close  of  the  year  their  books 
show  the  following  condition :  Cash  on  hand,  $15000 ;  Notes,  $5700  ;  Interest 
on  same,  $500 ;  Materials  and  Implements,  $18000  ;  Personal  accounts,  $9400. 

What  is  the  net  gain  or  loss  ?     Wliat  is  eax:h  partner's  capital  at  closing  ? 

Example  IV. — The  following  statement  exhibits  the  condition  of  Horton  & 
Kandall's  business  at  the  end  of  the  year : 

Resources:  Mdse.,  $7500  ;  Cash,  $4375.  Personal  Accounts,  yiz. :  H.  M. 
Monsanto,  $575;  F.  M.  Choquill,  $170:  C.  E.  Carhart,  $325.  LiabiUties:  To 
D.  B.  Ivison  on  %,  $1750  ;  To  D.  W.  Fish,  on  their  note,  $1000.  The  original 
investments  were:  B.  Horton,  Cash,  $5000;  A.  W.  Randall,  Cash,  $3000; 
Mdse.,  $2000.  Mr.  Horton  has  drawn  out  for  private  use  $1275  ;  Mr.  Ran- 
dall, do.,  $1450. 

Required,  the  gain  or  loss  of  the  business,  and  the  condition  of  each  pa/rtiier'-^ 
account  after  the  net  results  have  been  equally  divided. 

92 


PRACTICAL    EXERCISES. 

[To  be  written  up  after  the  manner  of  Set  4.] 

Transactions . — Fourth  Series. 

Jll7ie  /. — William  Jones  and  Thomas  Mason,  enter  into  copartnership. 
William  Jones  invests :  Mdse.,  $4750 ;  Tools  and  Implements, 
$750  ;  John  Jacobs'  note,  dated  May  4  @  80  ds.,  for  $500,  and  Wm. 
Carter's  of  Apr.  19,  @  2  mos.,  for  $1000 ;  Peter  Filkin's  %,  $500  ; 

Robert  Hall's  do.,  $700 Thomas  Mason  invests :  Cash,  $8200 

Sold  W.  D.  Packard,  on  %,  1  set  Enameled  Furniture,  $75. , 

2  Hair  Mattresses,  @  $12  each ;  1  Mahogany  Arm  Chair,  $15. 

^.— Paid  Cash  for  Stationery,  $20 Sold  Robert  Banks,  for  Cash, 

1  doz.  Dining  Chairs,  $20  ;   1  Hall  Stand,  ,f  8  ;   1  Mahogany  Bed- 
stead,  $12 Paid    Cash  for  Lumber,  $25 Sold  George 

Chrysler,  on  his  note  @  30  ds.,  1  Child's  Crib,  B.  W.,  $6 ;  1  Mahog^ 
any  Bureau,  $25  ;  1  Tete-a-tete,  R.  W.,  $30. 

,?.— Received  Cash  of  Robert  Hall,  on  %,  $300 Sold  George  A. 

Crocker,  on  %,  1  Hall  Stand,  $6;  2  Light  Washstands,  1  @  $5, 

and  1  @  $7  ;   12  Kitchen  Chairs,  @  75)^ Sold  John  Hall,  for 

Cash,  1  French  Bedstead,  $15. 

^.— Paid  Workmen,  Cash  to  date,  $165 Sold  A.  W.  Betts,  on  %, 

10  Cane  Bottom  Chairs,  @  $1.75  each ;  1  Black  Walnut  Tete-a-tete, 

$30  ;  1  Card  Table,  $10  ;  3  small  Washstands,  @  $2.50  each 

Sold  James  Morgan,  for  Cash,  1  Black  Walnut  Book-case,  $40 ; 
1  Double-leaf  Secretary,  $30. 

&. — Received  Cash  for  John  Jacobs'  note,  due  this  day,  $500 

Sold  Charles  Williams,  on  his  note  @  60  ds.,  1  pair  Ottomans,  $12; 
1  Piano  Stool,  $7;   8  Brocatelle  Parlor  Chairs,  @  $4  each;   1  Sofa 

Table,  $15 Bo't  of  Clark  Dunham,  on  %,  1  lot  Black  Walnut 

Lumber,  $900. 

7.— Sold  A.  W.  Betts,  on  %,  1  Mahogany  Centre  Table,  $15  ;  1  Cottage 

Bedstead,  $10  ;  1  Corner  Stand,  $5 Sold  James  W.  Lusk, 

for  Cash,  1  Black  Walnut  Book-case,  $50 Received  Cash  in 

full  of  Peter  Filkin's  %,  $500. 

S, — Sold  J.  C.  Buttre,  for  Cash,  1  Dressing  Bureau  (serpentine  front), 

$25  ;   1  Study  Lounge,  $12  ;   1  Extension  Dining  Table,  $17 

Sold  Wm.  T.  Brooks,  on  %,  1  Rosewood  Tete-a-tete,  f  50. 

O, — Sold  James  Moore,  for  Cash,  1  Quartette  Table,  $6;    0  Parlor 
Chairs,  @  $5  each  ;  1  set  Enameled  Furniture,  $50. 

/6>.— Paid  Cash  for  Gas  Bill,  $14.30 Received  Cash  of  A.  W.  Betts, 

in  full  of  %,  $ 

/5.— Paid  Workmen,  C^ash  to  date,  $275 Sold  Geo.  A.  Crocker, 

on  %,  6  Parlor  Chairs,  @  $3  ;  12  Dining  do.,  @  $1.50  ;  1  Clock,  $5. 
/e^.— Sold  Benj.  F.  Butler,  on  %,  8  doz.  Camp  Stools,  96  @  50^  each  j 

1  Portable  Secretary,  $25 Received  Cash  on  %,  of  W.  D. 

Packard,  $75. 
/5.— Sold  Robert  Hall,  on  %,  6  Gothic  Chairs  @  $5  each;  1  French 

Bedstead,  $15  ;  2  Washstands,  @  $4  each Sold  W.  J.  Cur- 

93 


EXERCISES  FOR  THE  LEARNER. 

tiss,  for  Cash,  1  Book-case,  $40 ;  4  Library  Chairs,  @  $7  each ; 
1  large  Rocking  Chair,  $15. 

/7.— Paid  Workmen,  Cash  to  date,  $218 Received  Cash  of  Geo. 

A.  Crocker,  in  full  of   %,$ Sold  J.  C.  Banks,  for 

Cash,  1  Double  Bedstead,  $10  ;  1  Single  do.,  $9. 

/<^.— Paid  Clark  Dunham,  Cash  on  % ,  $500 Sold  John  Banks,  on 

his  note  @  30  ds.,  1  Bureau,  $30 ;  1  Sofa  Bedstead,  $45. 

/^.— Sold  W.  D.  Packard,  on  %,  13  Kitchen  Chairs,  @  $1  each  ;  3  Com- 
mon Bedsteads,  @  $5  each  ;  1  Office  Desk,  $15 Sold  W.  Te 

Brooks,  on  %,  1  Carved  Rosewood  Center  Table,  $45. 

^6>.— Received  Cash  of  W.  D.  Packard,  in  full  of  %,  $ 

^/.— Sold  Robert  Hall,  on  %,  1  Teacher's  Desk,  $25;  12  Dining  Chairs, 
@  $1.75;  12  Cane  Bottom  Settees,  @  $8  each. 

^^.  — Paid  Cash,  Book-keeper's  salary,  $75 Received  Cash,  in  full 

of  William  Carter's  note,  now  due,  $1000. 

^^.— Paid  Workmen,  Cash  to  date,  $193 Sold  E.  A.  Charlton,  on 

%,  50  Double  School-Desks,  @  $9  each;  100  Chairs  for  same,  @ 
50,'^  each. 

^J.— So:d  Wm.  Johnson,  for  Cash,  1  Mahogany  Bedstead,  $20;  1  Mar- 
ble-top Washstand,  $17 Received  Cash  of  Robert  Hall,  on 

%,  $200. 

JSe.—Sold  John  S.  Williams,  on  %,Q  Parlor  Chairs,  Brocatelle,  @  $5 
each ;  1  carved  Rosewood  Centre  Table,  $50 ;  1  Piano  Stool,  $10 
Paid  Cash,  on  Drayage  %,  $50. 

^7.— Sold  Peter  Duff,  for  Cash,  6  Office  Chairs,  @  $2.50  each Paid 

Clark  Dunham,  Cash  in  full  of  %,  $  Received  Cash 

of  Robert  Hall,  in  full  of  %,  $ 

^.9.— Sold  William  Dallas,  on  %,  1  Mahogany  Sofa,  $35;  1  Rosewood 
Arm  Chair,  $45,  1  Hall  Stand,  $7 ;  1  Tete-a-tete,  $30. 

NEW    FIRM 

J'lity  /. — Jones  and  Mason  have  this  day  associated  with  them  George  F. 
Smith,  who  is  to  invest  an  equal  amount  with  each  of  the  former 
partners,  and  share  equally  in  gains  and  losses.  The  value  of 
unsold  merchandise  is  $5500 ;  of  Tools  and  Implements,  $750  ; 
the  other  resources  and  liabilities  can  be  ascertained  by  reference 

to  the  appropriate  books.    Mr.  Smith  invests :  Cash,*  i-^^^ 

Bo't  of  Henry  P.  Smith,  for  Cash,  a  quantity  of  Pine  Lumber 
amounting  to  $3500 Paid  Workmen,  Cash  to  date,  $175. 

,5.— Sold  John  S.  Williams,  on  ^,  2  Bedsteads,  1  @  $6,  and  1  @  $10  . 
3  Washstands,  @  $2.50  each ;  6  Kitchen  Chairs,  @  $1.50  each  ; 
1  Lounge,  $15  ;  1  Secretary,  $25  ;  1  Bureau,  $18. 

^.— Sold  E.  A.  Trotter,  for  Cash,  1  Black  Walnut  Book-case,  $60 

Sold  James  Thurber  for  Cash,  6  School  Desks  (single),  @  $5  each  ; 
1  Teacher's  Desk,  $25  ;  2  Office  Chairs,  @  $7.50  each. 

♦  In  order  to  ascertain  the  amount  of  Smith's  investment,  it  will  be  necessary  to  carry  tba 
gains  to  the  partners'  accounts.— A  statement  should  be  made  similar  to  that  on  page  76. 

94 


EXERCISES   FOR  THE   LEARITER. 

6, — Sold  Joseph  Wadswortli,  on  his  note  @  30  ds.,  1  Rosewood  Tete-a- 
tete,  $65  ;  2  Ottomans,  @  $10  each Received  Cash,  in  full  of 

George  Chrysler's  note  of  the  2d  ult.,  $61. 

<9.— Paid  Workmen,  Cash  to  date,  $218 Sold  James  McQrath, 

for  Cash,  12  Dining  Chairs,  @  $2  each;   1  open  Lounge,  $17; 
1  Bureau,  $20. 

/O, — Received  Cash,  on  %  of  Wm.  Dallas,  $50 Sold  Steamer  Troy, 

on  %,  2  Black  Walnut  Sofas,  @  $45  each ;  3  Tete-a-tetes,  @  $50 
each  ;  24  Chairs,  @  $7  each. 

//.—Received  Cash,  in  full  of  E.  A.  Charlton's  %,  $ Sold 

W.  F.  Norman  for  Cash,  1  Black  Walnut  Book-case,  $60;  1  Bureau, 

$30 Bo't  of  Robert  Coons  for  Cash,  lot  of  Mahogany  Lumber, 

amounting  to  $5700. 

/eJ.— Paid  Workmen,  Cash  to  date,  $212. 

/^.— Sold  Henry  Harper,  for  Cash,  50  School  Desks,  @  $9  each 

Received  Cash  of  John  S.  Williams,  on  %,  $90. 

//.—Sold  Robert  S.  Hay  ward,  on  %,  1  Gothic  Book-case,  $75 

Received  Cash  of  B.  F.  Butler,  in  full  of  %,  $ 

-^6>.— Sold  John  S.  Williams,  on  %,  12  Parlor  Chairs,  @  $5  each. 

^^.— Paid  Workmen.  Cash  to  date,  $175. 

^J.— Paid  Gas  Bill  in  Cash,  $15 Sold  Peter  McGrath  for  Cash, 

1  Sofa  Bedstead,  $50. 

^^.— Paid  Workmen,  Cash  to  date,  $219 Paid  Cash  for  rent,  $100. 


STATEMENT, 

SHOWING    THE   CONDITION   OF  THE  BUSINESS  JULY  31. 


_  Resources. 

(per  Inventory), 


Mdpe.  unsold 
Cash  on  hand. 
Notes      " 

W.  T.  Brooks,         Balance  of  % , 
John  S.  Williams,        ""  " 

Wm.  Dallas,  ''  " 

Steamer  Troy,  "  " 

Robt.  S.  Hayward,        "  " 

Tools  and  Implements,  at  valuation, 


Liabilities.. 


Wm.  Jones, 
Thos.  Mason, 
Geo  F.  Smith, 


Net  Capital,  July  1, 

\  Net  Gain, 

Net  Capital,  July  1, 

J  Net  Gain, 

Net  Capital,  July  1, 

\  Net  Gain, 


95 


$8637  35 
228  50 


8637  35 
228  50 


8637  35 
228  50 


15000 

9826 

226 

95 

150 

67 

408 

75 

750 


8865 


05 


50 


26597 


55 


55 


QUESTIONS    FOR    REVIEW. 


Remarks,  Page  50. 

1.  What  is  the  peculiar  feature  of  Set  3  ?  S.  How  does  the  form  of  the 
Cash  Book  in  this  set  differ  from  that  in  the  preceding  ?  3.  Which  is  prefer- 
able? 4.  Why?  6.  For  what  purpose  is  the  Sales-Book  used?  6.  Is  it 
essential  that  the  sales  should  be  entered  on  the  Day-Book  ?  7.  How  posted 
if  not  so  entered  ?  8.  What  do  the  initials  in  the  margin  of  the  Sales-Book 
indicate  ?  9.  Is  the  Sales-Book  used  in  making  up  a  list  of  Resources  and 
Liabilities  ? 


Remarks,  Page  72. 

10.  What  is  the  purpose  of  Set  4  ?  11.  What  is  the  important  feature  m 
this  set  ?  12.  How  does  the  Sales-Book  differ  in  its  use  from  that  in  Set  3  ? 
13.  What  is  the  advantage  ?  14^.  What  do  the  figures  in  the  margin  indi- 
cate? 15.  What  other  feature  than  the  peculiar  use  of  the  Sales-Book  is 
prominent  in  this  set  ?  16.  How  must  a  change  in  the  business  be  marked  ? 
17.  At  what  periods  in  business  is  it  proper  that  the  resources  and  liabilities 
should  be  shown  ?  18,  In  admitting  a  new  partner  with  an  equal  investment, 
how  can  the  proper  amount  of  the  investment  be  ascertained  ?  19.  Why 
not  make  the  new  partner's  investment  equal  to  the  original  investment  of 
the  former  proprietor  ? 


96 


PART    II 


DOUBLE     ENTRY. 


PART     II. 

DOUBLE    ENTRY. 


INTRODUCTION. 


If  the  method  of  keeping  accounts  by  Single  Entry  may  be 
3alled  a  system,  that  by  Double  Entry  may  with  equal  propriety 
be  called  a  science ;  for,  while  the  former  possesses  ths  means  of 
showing  ti  a  condition  of  business,  the  latter  not  only  affords  a 
proof  of  its  owa  correctness,  but  in  addition  to  showing  the  con- 
dition of  business,  gives,  with  mathematical  exactness,  the  partic- 
ular channels  through  which  gains  and  losses  come.  The  real 
difference  between  them  hinges  on  this  latter  qualification,  and 
to  the  fact  that  in  Double  Entry  all  the  results,  including 
resources,  liabilities,  gains  and  losses,  are  shown  in  the  Ledger, 
while  in  Single  Entry,  the  partial  results  are  gathered  from 
various  auxiliary  books,  including  the  Ledger,  Cash-Book,  Bill- 
Book,  etc. 

The  precise  difference  may  be  appreciated  by  comparing  Set  3, 
in  Part  IL  with  the  corresponding  Set  in  Part  L,  the  transactions 
being  the  same  in  both  cases. 

The  term  DouUe  Entry,  as  contradistinctive  to  Single  Entry, 
has  reference  to  the  fact,  that  for  every  transaction,  two  or  more 
entries  are  made  in  the  Ledger.  The  condition  of  these  entries 
is  such  that  each  transaction,  when  properly  recorded,  will  pro- 
duce on  the  Ledger  equal  debits  and  credits ;  that  is,  the  same 
value  which  is  carried  to  the  debtor  side  of  one  or  more  accounts 
is  also  carried  to  the  creditor  side  of  one  or  more  accounts,  pro- 
ducing thus  a  perpetual  equilibrium  of  debits  and  credits,  and 
affording  a  distinct  test  of  the  correctness  of  the  work. 

99 


INTRODUCTION". 

The  theory  of  "  equal  debits  and  credits "  is  the  leading  feature 
of  Double  Entry ;  and  although  its  application  is,  in  all  cases,  most 
reasonable  and  satisfactory  to  the  accountant,  it  is  often  adjudged 
as  being  complex  and  mysterious,  and  calculated  more  to  befog  the 
mind  of  the  uninitiated  than  to  subserve  the  ends  of  justice. 

To  those  who  are  troubled  with  these  doubts,  it  is  only  neces- 
sary to  say  that  Double  Entry  contains  every  feature  of  Single 
Entry;  and,  that  so  far  as  Smgle  Entry  goes,  it  differs  in  none  o! 
its  results  from  Double  Entry;  the  latter  being  a  continuation,  or 
rather,  a  perfection  of  the  purposes  of  the  former.  The  main  dis- 
tinction between  the  two  systems  is,  that  while  in  Single  Entry  a 
record  is  kept  of  resources  and  liaUlities  only,  in  Double  Entry 
a  similar  and  additional  record  is  kept  of  gai7is  and  losses.  This 
feature  of  Doable  Entry  commends  it  at  once  to  prudent  business 
men ;  for  while  it  may  properly  be  regarded  as  affording  a  true 
indication  of  the  comparative  ments  of  the  various  schemes  of 
profit,  it  also,  in  a  great  measure,  guards  against  errors  and  omis- 
sions which  might  pass  undetected  in  Single  Entry. 

As  in  Single,  so  in  Double  Entry,  the  main  book  of .  Accounts 
is  the  Ledger.  The  Single  Entry  Ledger,  however,  cor.taius  only 
accounts  with  individuals,  while  the  Double  Entry  Ledger  shows 
the  result  of  each  transaction,  both  as  regards  the  character  of  the 
exchange  and  the  gain  or  loss  thereby  effected.  Thus  accounts  are 
kept,  not  only  with  persons  whom  we  may  owe,  or  who  may  owe 
us,  but  with  every  s]jecies  of  property  in  which  we  deal,  and  every 
cause  pi'oducing  gain  or  loss. 

Although  it  is  customary,  in  connection  with  Double  Entry 
and  Single  Entry  books  alike,  to  keep  a  Cash-Book  and  Bill-Book, 
yet  all  the  essential  facts  connected  with  cash  and  notes  are  shown 
in  the  proper  Ledger  accounts. 

The  three  main  books  used  in  Double  Entry  are  the  Day-Book, 
,  Journal,  and  Ledger.  The  Day-Bpok  and  Journal  are  sometimes 
combined  in  one. 

THE  DAT-BOOK 

is  the  original  book  of  entry,  and  contains  a  consecutive  history 
of  the  transactions,  in  the  order  and  date  of  their  occurrence.  It 
should  be  plain,  concise,  and  unequivocal  in  its  statements ;  neither 
confusing  the  mind  by  redundancy  of  language,  nor  leaving  rooni 
for  doubt  from  lack  of  full  explanation. 

100 


INTRODUCTION. 


THE    JOURNAL  ,   ,\\  ]      \  \Vy\  .";  J.  ,•  ,'   ,>^ 

when  used  separately,  is  the  intermediate  book  between  the  f)ay- 
Book  and  the  Ledger.  Its  office  is  to  decide  upon  the  proper 
debits  and  credits  involved  in  each  transaction,  preparatory  to  their 
going  upon  the  Ledger.  The  process  of  thus  classifying  the  trans- 
actions is  caWed  journalizing. 

THE    LEDGER, 

is  the  book  of  results, — the  final  book  of  entry.  Here,  under 
appropriate  heads,  called  accounts,  are  arranged  all  the  facts  neces- 
sary for  a  full  and  satisfactory  statement  of  the  business;  including 
not  only  an  exhibition  of  the  present  resources  and  liabilities,  but 
a  distinct  record  of  particular  gains  and  losses.  The  process  of 
transferring  to  the  Ledger  is  called  posting. 

The  following  examples  of  these  separate  books,  showing  their 
characteristic  records  of  the  same  transaction,  will  clearly  indicate 
their  use : 

1.— Day-Book. 
JVe^f^  Tor  A:,  J'amiary  /,  7879. 


V 


Bought  of  James  Monkoe,  on  account, 

500  brls.  Flour @  $10 


Sold  Andrew  Jackson,  for  Cash, 
100  brls.  Flour 


©$10  50 


5000 


1050 

e 


2. — Journal. 

JVew  TorA:,  J^cmumy  f,  7879.    Br. 


Cr. 


Merchandise,  Dr. 


To  James  Monroe 


Cash, 


Dr. 


To  Merchandise     .    . 

Ledger  Titles.— 2>r.  Ledger  Titles.-C/-. 

101 


5000 


1050 


5000 


1050 


INTRODUCTION. 


Dr. 


3. — Ledger. 

1 
Merchandise. 


Cr. 


1879 
Jan. 


To  James  Monroe 


For  what  debited. 


5000 


1879 
Jan. 


By  Cash 


For  what  credited. 


1050 


Dr. 


James  Monroe. 


Cr. 


1879 
Jan. 


By  Merchandise  . 


5000 


Dr. 


8 

Cash. 


Cr. 


1879 
Jan. 


To  Merchandise  . 


1050 


102 


THE   SCIENCE    OF   ACCOUNTS. 

Although  the  books  containing  a  consecutive  history  of  the 
business  are  essential  for  that  purpose,  yet  the  science  of  Accounts 
pertains  exclusively  to  the  results  of  the  transactions  as  shown  in 
the  Ledger.  Particularly  is  this  true  in  Double  Entry,  where  the 
Ledger  contains  all  the  results  necessary  for  a  complete  rendering 
of  the  condition  of  the  business,  at  any  time. 

Each  Ledger  account  is,  properly,  a  statement  of  some  financial 
fact,  and  shows  one  of  the  four  following  results,  viz. :  a  resource, 
a  liability,  a  gain,  or  a  loss.  These  facts  or  results  are  ascertained 
by  taking  the  difference  between  the  sides  of  the  accounts,  thus : 


Br. 


Cash. 


Cr, 


Cash  Received. 


Cash  Paid  out. 


18T9 

1879 

Jan, 

1 

To  Stock  (Inv't) 

5000 

Jan. 

1 

By  Merchandise 

2500 

(( 

15 

"  Merchandise 

1500 

'' 

10 

U                         l( 

1200 

u 

30 

fllSOO 

5000 

30 

"  David  Brown 

"  Expense 

$4500 

500 
300 

Total  Cash  Received, $11500 

"         "      Paid  out, 4500 

Balance  on  hand— Resource, $7000 


Dr 

Merehandi 

se. 

Cr 

. 

Outlay  for  Merchandise.                                                               Returns  from  Merchandise. 

1879 

1879 

Jan. 

1 

10 
14 

To  Cash, 

"   David  Brown, 
fseoo 

2500 
1200 
1500 

Jan. 

15 
30 

By  Cash, 

16500 

1500 
5000 

Total  Returns  of  Merchandise, $6500 

"      Outlay  for              ''             5200 

Net  Returns— Gain, $1300 

103 


THE   SCIEl!q^CE   OF  ACCOUNTS. 


Br.  David   Brown.  Cr. 

Uis  indebtedness  to  vs.  Our  indebtedness  to  him. 


1879 
Jan. 


30 


To  Cash, 


We  owe  him 
He  owes  us 


500 


1879 
Jan. 


14 


By  Merchandise, 


1500 


Balance  due  him— Liabuitt, 


$1500 

500 

$1000 


Dr. 


Expense. 


Cr. 


Outlay. 


1879 

Jan. 


To  Cash, 


300 


Total  Outlay  for  Expenses— Loss, $300 

We  will  suppose  the  above  accounts  to  comprise  all  in  the 
Ledger  with  the  exception  of  the  Stock,  or  Proprietor's  account, 
which  should  represent  the  net  investment;  and  that  the  net 
investment,  as  shown  by  the  first  entry  in  Cash  account,  is  15000. 
The  following  statement  will  sufiBciently  enforce  the  leading  prin- 
ciples of  the  science. 


Resource.— Cash  on  hand, $7000 

Liability.— We  owe  David  Brown,        .       :       .        .       .       1000 
JVet  Resources.,  or  Present  Worth 

Gain.— On  Merchandise, $1300 

Loss. — On  Expense, 300 

Net  Gain, $1000 

Add  oriijinal  Investment,    ....  5000 

Gives  Present  Worth, 


$6000 


$6000 


From  the  foregoing  illustrations  we  deduce  the  following  gen- 
eral principles : 

1.  An  Account  is  a  statement  of  facts  pertaining  to  some  per- 
son, species  of  property  or  cause,  so  arranged  as  to  show  some 
specific  result. 

104 


THE  SCIENCE   OF  ACCOUJ^TS. 

2.  Every  account  has  two  sides,  a  debtor  and  a  creditor  ;  each 
containing  the  results  of  separate  transactions,  and  showing,  in 
the  difference  between  the  amounts,  a  general  result  or  fact  having 
an  important  bearing  upon  the  business. 

3.  Accounts  may  be  divided  into  two  classes ;  one  of  which  is 
used  to  designate  the  resources  and  Uahilities,  and  the  other^  the 
gains  and  losses. 

4.  The  net  gain  or  net  loss  in  business,  as  evinced  by  the  general 
result  of  all  the  accounts  showing  gains  or  losses,  is  confirmed  by 
a  corresponding  increase  or  diminution  of  wealth,  which  is  shown 
in  the  general  result  of  all  the  accounts  showing  resources  or 
liabilities. 

DEBITS    AND    CREDITS. 

One  of  the  great  difficulties  which  beset  the  teacher  of  Accounts, 
is  in  the  proper  definition  and  explanation  of  the  terms  "  Debit  and 
Credit."  So  well  is  this  fact  appreciated,  that  authors  have  been 
induced  to  found  treatises  on  Book-keeping  upon  what  they  regard 
the  discovery  of  some  "  infallible  rule  "  for  journalizing,  which  is 
to  revolutionize  the  labor  and  processes  of  instruction,  and  open  up 
to  the  world  a  grand  highway  of  "  Bookkeeping-made-easy."  The 
student  is  assured  that  the  whole  matter  turns  upon  some  simple 
fact,  such,  for  instance,  as  owing  and  heing  owed.  "  Thus,"  says 
the  author, ''  everj  debit  owes  you,  and  you  owe  eyerj  credit  j"  and 
from  these  premises  is  deduced  the  infallible  corollary,  '^  Debit 
what  owes  you,  and  credit  what  you  owe." 

Other  authors,  again,  rush  to  the  opposite  extreme,  basing  the 
theory  of  debits  and  credits  upon  an  utter  lack  of  theory,  announc- 
ing, at  the  start,  that  "  the  items  of  which  debits  and  credits  are 
composed  form  a  list  of  incongruous  facts  having  no  object  in 
common."  And  yet  these  different  theorists,  widely  as  they  may 
diverge  touching  the  reasons  of  things,  come  at  last  to  the  same 
practical  conclusion  as  to  results. 

The  questions  as  to  the  best  7net7iods  of  presenting  truth  is  a 
professional  question,  and  it  is  the  business  of  every  author  and 
every  teacher  to  use  the  best  reasons  he  has,  and  to  produce  the 
best  results  he  can  in  his  own  way. 

We  believe  that  every  student  who  will  familiarize  himself  with 
the  principles  which  follow,  need  have  no  difficulty  in  decidin 

105 


THE  SCIENCE   OF   ACCOUNTS. 

apon  the  debits  and  credits  involved  in  any  business  record  which 
he  may  be  called  upon  to  make : 

PRINCIPLES. 
/.—Proprietors. 

The  person  or  persons  owning  the  business  should  be  credited, 
under  some  title,  for  investments  when  made,  and  for  their  share 
of  the  gain,  at  such  time  as  an  accounting  is  made.  They  should 
also  be  debited  individually  for  what  they  draw  from  the  business — 
or  what  the  business  pays  or  assumes  to  pay  for  them— and  for 
their  share  of  the  losses,  when  such  losses  are  finally  determined 

^.— Cash. 

Cash  account  should  be  debited  for  all  money  received,  and 
credited  for  all  money  paid  out. 

3. — Other  People's  Written  Promises. 

Bills  Keceivable  account  should  be  debited  for  all  notes,  drafts, 
or  other  written  obligations  for  which  we  are  to  receive  payment, 
when  they  become  ours,  and  credited  when  they  are  paid,  or  other- 
wise disposed  of. 

^.— Our  Written  Promises. 

Bills  Payable  account  should  be  credited  with  our  written  obli- 
gations when  they  are  issued,  and  debited  when  they  are  paid  or 
redeemed. 

6, — Persons. 

Personal  accounts,  or  accounts  with  individuals,  banks  or  other 
institutions  competent  to  sue  or  be  sued,  should  be  debited  under 
their  proper  titles  when  they  become  indebted  to  us,  or  we  get  out 
of  their  debt,  and  credited  when  we  become  indebted  to  them  or 
iliey  get  out  of  our  debt. 

6. — Losses  and  Gains. 

Causes  producing  losses  or  gains  in  business  should  be  desig- 
nated in  accounts,  bearing  significant  titles.  Such  accounts  should 
be  debited  for  all  outlays  or  losses,  and  credited  for  all  returns  or 
gains.* 

*  This  definition  covers  the  purchase  and  sale  of  j^oods,  the  producing  power  of  labor, 
the  incurring  of  expenses,  etc.,  etc. ;  in  fact  everything  that  effects  an  increase  or  diminution 
of  wealth,  or  is  employed  to  that  end. 

106 


QUESTIONS    FOR    REVIEW. 


Introduction,  Page  99. 

1,  Why  lias  Double  Entry  better  claims  to  the  distinction  of  an  exact 
science  than  Single  Entry?  2.  In  what  particulars  do  the  two  systems  differ? 
3.  How  may  the  precise  difference  be  seen  ?  If..  To  what  has  the  term  Double 
Entry  reference  ?  5.  What  is  the  condition  of  every  complete  entry  upon 
the  Ledger  ?  6.  What  is  the  advantage  of  the  equilibrium  produced  in  the 
Ledger?  7.  What  is  the  main  book  of  accounts  in  Double  Entry?  S.  How 
does  the  Double  Entry  Ledger  differ  from  the  Single  ?  9.  What  beside  per- 
sonal accounts  are  kept  in  the  Double  Entry  Ledger?  10.  Do  the  Cash-Book 
and  Bill-Book  alone  contain  all  the  facts  pertaining  to  notes  and  cash? — 
11.  What  are  the  three  main  books  in  Double  Entry? — 12.  Which  two  of 
these  are  sometimes  combined  in  one  ? — 13.  What  does  the  Day-Book  con- 
tain ? — 14.  What  should  be  its  character  ? — 15.  What  relation  does  the 
Journal  sustain  to  the  other  books? — 16.  What  is  its  office? — 17.  What  is 
the  process  of  entering  in  the  Journal  called  ? — 18.  Describe  the  Ledger. — 
19.  What  does  the  Ledger  contain  ? — 20.  What  is  the  process  of  entering  in 
the  Ledger  called  % 


The  Science  of  Accounts,  Page  103. 

21.  To  what  does  the  "  Science  of  Accounts  "  exclusively  pertain  ? — 22.  Of 
what  is  each  Ledger  account  a  statement  ? — 23.  How  are  these  results  shown  ? 
— 24.  When  the  Debit  side  of  Cash  account  is  the  larger,  what  does  the  differ- 
ence express? — 25.  When  the  Credit  side  of  Merchandise  account  is  the 
larger,  what  does  the  difference  express? — 26.  When  the  Credit  side  of  a 
personal  account  is  the  larger,  what  does  the  difference  express? — 27.  When 
ihe  Dehit  side  of  Expense  account  is  the  larger,  what  does  the  difference 
express  ? — 28.  What  is  an  Account  'i—29.  What  are  the  characteristics  of  an 
Account? — 30.  Into  how  many  classes  may  Accounts  be  divided,  and  what 
are  they? — 31.  How  is  the  net  gain  or  loss  in  business,  as  shown  by  the 
special  accounts,  confirmed? — 32.  What  is  one  of  the  chief  difficulties  in  the 
way  of  teaching  accounts  ?  —33.  Do  intelligent  authors  and  teachers  differ  in 
their  application  of  the  truths  of  Double  Entry? — 34.  When  should  the  pro- 
prietor of  the  business  be  debited,  and  when  credited  f — 35.  When  should 
Cash  account  be  debited,  and  when  credited? — 36.  Merchandise? — 37.  Bills 
Receivable ?—<J<9.  Bills  Payable ?— .55.  Personal  Accounts ?—^^.  Expense,  etc.? 

107 


ACCOUNTS    CURRENT. 

An  Account  Current  in  commercial  usage,  is  the  statement  in 
proper  form  of  a  current  or  running  account.  It  is  usually  made 
with  a  view  to  settlement  and  shows  the  balance  due  to  or  from 
the  party  to  whom  it  is  rendered.  When  large  transactions  are 
conducted  on  credit  it  is  usual  in  rendering  the  Account  Current 
to  average  the  time  of  payment,  so  that  the  balance  may  be  paid 
without  either  party  losing  interest.  The  yarious  methods  of 
averaging  are  given  in  most  arithmetical  works,  and  thoroughly 
enforced  in  the  advanced  editions  of  this  series.  We  give  below 
the  most  common  form  of  an  Account  Current. 


Mr.  John  R.  Penn, 


In  Account  Current  with  S.  S.  Packabd. 


1861 
July 


Aug. 


July 

Aug. 


To  2  doz.  Bryant  &  Stratton's  (H.  S.)  Book-keeping  .    , 
1    "         "  "  (Primary)      " 

6  Webster's  Unabridged  Dictionary     .    .  @  $6 

4  reams  Union  Letter  Paper @  $3 

1  doz.  gross  Gillotfs  604  Pens      .    ,    .    .  @,  75<f 

20  doz.  Spencerian  Copy  Books    .    .    .    .  @,  $1 

15  Dean's  Commercial  Law @  $2 

20  gross  Spencerian  Pens @,  75p 

12  reams  Best  Wove  Cap  Paper   ....  @,  $4 

50  Commercial  Arithmetic @  75t 

6  Kobinson's  Surveying @,  $1.25 

12  Wells'  Science  of  Common  Things  .    .  @  50  f 

24     "      Natural  Philosophy @  75^ 

24      "       Chemistry @.  75$ 

Cr 

By  Cash 

Balance  due 


108 


10 
145 
50 


205 


^ET     1. pOUBLE    iJNTRY. 


INTRODUCTORY. 


DAY-BOOK,  JOURNAL,  AND  LEDGER 


WITH   EXPLANATIONS    FOR   JOURNALIZING,    STATEMENTS,    ETC. 


(^zLSZTzess    ^rosperoizs. 


109 


RE  MARKS. 

The  following  set  comprises  very  simple  transactions;  the 
purpose  being  to  illustrate  the  foregoing  principles,  and  to  initiate 
the  student  into  the  processes  of  Book-keeping.  The  transactions 
are  first  recorded  historically  in  the  Day-Book,  in  the  order  of  their 
occurrence;  from  thence  transferred  to  the  Journal,  and  from 
thence  to  the  Ledger.  In  journalizing  a  transaction,  the  first 
thing  to  be  considered  is,  the  person  or  thing  affected;  next,  in 
what  manner  affected;  and  next,  the  proper  application  of  tlie 
principle.  For  instance,  the  first  entry  is—"  Bo't  of  Smith  &  Sons, 
on  %,  1000  brls.  Flour."  The  things  affected  are.  Smith  &  Sons, 
and  Flour.  We  have  become  indebted  to  the  former,  and  the 
latter  has  cost  an  outlay.  AVe  turn  to  the  principles,  and  learn 
that  personal  accounts  should  be  credited  when  we  become  indebted 
to  the  persons  (Prin.  5),  and  merchandise,  and  all  species  of  prop- 
erty should  be  debited  under  some  appropriate  head  for  the  outlay 
(Prin.  6).  The  established  form  of  Journal  entries  requires  the 
debit  expression  to  precede  the  credit,  and  hence  we  have  the 
Journal  entry — "Flour  Dr.,  Smith  &  Sons  Or."  In  posting  this 
entry  to  the  Leager,  we  open  separate  accounts  with  Flour,  and 
Smith  &  Sons,  debiting  the  former  and  crediting  the  latter.  It  is 
not  really  necessary  that  any  expression  should  be  made  under  the 
Ledger  title,  the  date  and  amount  being  sufficient  to  show  the 
result,  but  it  is  usual  to  insert  the  opposite  Journal  expression,  as 
an  explanation  of  the  transaction.  The  check-mark  (y)  in  the 
Day-Book  is  made  immediately  after  the  transaction  is  carried  to 
the  Journal,  and  the  post-mark  in  the  margin  of  the  Journal 
(indicating  the  Ledger  page  to  which  the  account  is  posted), 
immediately  upon  its  being  posted.  The  numeral  in  the  Ledger 
column  next  preceding  the  amounts  indicates  the  Journal  page 
from  which  the  amount  is  tranferred.  The  Ledger  is  left  in  its 
current  or  runyiiyig  condition,  the  general  results  being  first  indi- 
cated by  pencil  figures  on  the  smaller  side  of  each  account,  and 
next,  more  completely  and  systematically  in  the  Statement  on 
page  121.  The  method  of  showing  these  results  on  the  Ledger  is 
fully  shown  in  Set  II. 

110 


Set  1.J  Double  Entry— Day  -  Book. 

Xew  York,  January  1,  1878. 


Bought  of  Smith  &  Sons,  on  %, 

1000  brls.  Flour,  @  $6  00 


Sold  Robert  Bates,  for  Cash, 

300  brls.  Flour,  @  $6  50 


Sold  Peter  Cooper,  on  %, 

250  brls.  Flour,  @  $7  00 


7 


/ 


/ 


Sold  John  Jones,  on  his  Note  @  30  ds., 
150  brls.  Flour,  @  $7  00 

10  


Bought  of  J.  R  Wheeler,  on  our  Note  @  60  ds., 
500  bush.  Wheat,  @  $1  00 

12  


6000 


1950 


1750 


1050 


500 


Sold  James  Turner,  for  Cash, 

100  bush.  Wheat,  @  $1  25       $125  00 

100  brls.  Flour,  "     C  75         675  00 


i^— 

Paid  Cash  for  Stationery  and  Books  for  use  of 

Store, 

15 


Bought  of  Thomas  Payne,  for  Cash, 

300  brls.  Flour,  @  $5  00 


-  17 


Sold  Patrick  Murphy,  for  Cash, 

100  brls.  Flour,  @  $6  00 

Carried  forward, 


800 


50 


1500 


600 
14200 


111 


Double  Entry— Day -Book.         [set  i. 


Xew  York,  January  18,  1878. 


/ 


/ 


/ 


/ 


/ 


Bought  of  George  Davis,  on  %, 
.  1000  bush.  Oats,  d 

020  


Brought  forward. 


Sold  Raymond  &  Co.,  on  their  Note  @  5  ds., 

500  bush,  Oats,  @        W    $400  00 

100     "      Wheat,  "  $1  15        115  00 


Sold  Abram  Fuller,  for  Cash, 


400  brls.  Flour, 
800  bush.  Wheat. 


@  $6  00    $2400  00 
"     1  10        330  00 


25 


Bought  of  James  Hathaway,  on  %, 

1500  brls.  Flour,  @  $5  50 

27 


Sold  Jonas  Clark,  on  %, 
1000  brls.  Flour, 

28 


@$6  00 


Received  Cash  in  full  for  Raymond  &  Co.'s  Note, 
ojg  


/ 


/ 


Sold  John  Drummond,  for  Cash, 

500  brls.  Flour,  @ 

500  bush.  Oats, 


30 


$5  75    12875  00 
90/       450  00 


Paid  Clerk  hire,  in  Cash, 
"     Store  rent, 


$50  00 
50  00 


14200 
750 


515 


2730 


8250 


6000 


515 


3325 


100 
36385 


112 


Set  1.] 


Double  Entry— Journal. 


Keiv   York,  January  1,  1879. 


Dr. 

Cb. 

1 

Flour, 

6000 

2 

To  Smith  &  Sons, 

Flour  is  debited  for  outlay  or  cost 
{Prill.  6) ;   Smith  &  Sons  are  credited 
because   we    have    got   in   their  debt 
{Prin.  5). 

6000 

-<• 

3 

Cash, 

1950 

1 

To  Flour, 

Cash  is  debited  because  it  is  received 
{Prin.  2) ;  Flour  is  credited  for  returns 
{Prin.  6). 

AT 

1950 

o 

4 

Peter  Cooper, 

1750 

1 

To  Flour, 

Peter  Cooper  is  debited  because  he 
has  got  in  our  debt  {Prin.  5) ;  Flour  is 
credited  for  returns  {Prin.  6). 

1750 

i 

5 

Bills  Keceivable, 

1050 

1 

To  Flour, 

Bills  Receivable  is  debited  because  we 
have  received  another's  written   obli- 
gation {Prin.  3) ;  Flour  is  credited  for 
outlay  {Prin.  6> 

1050 

10750 

10750 

113 


Double  Entry— Journal.  [set  i. 


^ew  York,  January  10,  1878. 

Dr. 


Cr. 


9 
10 


Wheat, 


Brought  forward, 
To  Bills  Payable, 

Wheat  Dr.  PWn.6;  Bills  Pay'le  Cr.  Prin.  4 


Cash, 


To  Wheat, 
"    Flour, 


Casli  Dr.  Prin.  2 ;  Wheat  Cr.  )  „^ .     « 
Flour  Cr.f^^*^-^- 

u 


Expense, 

To  Cash, 

Expense  Dr.  Prin.  6 ;  Cash  Cr.  Prin.  2. 

15 


Flour, 


To  Cash, 


Flour  Dr.  Prin.  6  ;  Cash  Cr.  Prin  2. 
17 


Cash, 


To  Flour, 
Cash  Dr.  Prin.  2 ;  Flour  Cr.  Prin.  6. 
18 


Oats, 

To  George  Davis, 

Oats  Dr.  Prin.  6 ;  Geo.  Davis  Cr.  Prin.  5. 


114 


10750 
500 


800 


50 


1500 


600 


750 


14950 


10750 
500 


125 
675 


50 


1500 


600 


750 


14950 


Set  1. 


Double  Entry— Journal. 


3 


Kew  York,  January  20, 

1878. 
Dr. 

Cb. 

5 
9 
6 

3 
1 

6 

1 
11 

12 
1 

Brought  forward. 
Bills  Keceivable, 

To  Oats, 
"  Wheat, 
Bills  Receivable  Dr.,  Prin.  3  ;  Oats  and 
WlieatCr.,Pn7?.  6. 

14950 
515 

2730 

8250 
6000 

14950 

400 
115 

2400 
330 

8250 
6000 

Cash, 

To  Flour, 
"  Wheat, 
Cash  Dr.,  Prin.  2;  Flour  and  Wheat  Cr., 
Prin.  6. 

Flour, 

To  James  Hathaway, 
Flour  Dr.,  Prin.  6;  J.  Hathaway  Cr., 
Prin.  5. 

Jonas  Clark, 

To  Flour, 

3 
5 

3 

1 
9 

8 
3 

Jonas  Clark  Dr.,  Prin.  5;  Flour  Cr., 
Prin.  6. 

(liQ 

515 
3325 

100 

515 

2875 
450 

100 

Cash, 

To  Bills  Keceivable, 
Cash  Dr.,  Prin.  2. ;  Bills  Receivable  Cr., 
Prin.  3. 

Cash, 

To  Flour, 
"   Oats, 
Cash  Dr.,  Prin.  2 ;  Flour  and  Oats  Cr., 
Pnn.  6. 

Expense, 

To  Cash, 
Expense  Dr.,  Prin.  6 ;  Cash  Cr.,  Prin.  2. 

36385 

36385 

115 


Double  Entry— Ledger. 


Dr, 


Outlay. 


1 

Flour. 


[Set  1. 
Cr, 


1878 

1878 

Jan. 

I 

To  Smith  A  Sons, 

1 

6000 

Jan. 

2 

By  Cash, 

1 

1950 

15 

Cash, 

2 

1500 

5 

P.  Cooper, 

1 

1750 

25 

J.  Hathaway, 

15750 

Returns,   .    o  117300 
Outlay,.  .    .    15750 

Net  returns,      $1550 

3 

8250 

7 
12 
17 
22 
27 
29 

Bills  Rec'ble, 
Cash, 

Jonas  Clark, 
Cash, 

17300 

1 

2 

3 
3 
3 

1050 
675 
600 
2400 
6000 
2875 

Dr,         Our  f^f,  against  them.  Smith.     &     SOlflS.         Their  a^^  againa  us.  Qv. 


We  cue  them  f6000 


1878 

Jan. 


By  Flour, 


6000 


Dr. 


3 

Cash, 


Cr. 


1878 

1878 

Jan. 

2 

To  Flour, 

1 

1950 

Jan. 

14 

By  Expense, 

2 

50 

12 

Wheat  &  Fl'r, 

2 

800 

15 

Flour, 

2 

1500 

17 

Flour, 

2 

600 

80 

Expense, 

3 

100 

22 

Flour  &Wh't, 

3 

2730 

1650 

28 

Bills  Rec'ble, 

3 

515 

29 

Flour, 

9920 

3325 

Received,  |9920 
Paid  out,       1650 

On  hand,    |8270 

Dr.        Our  ar^  against  him.  PetOr      COOpeF.         His    (^  againH  us.  Cv . 


1878 
Jan. 


To  Flour  &  Oats, 


1750 


lie  owes  us  f  1750 


IIG 


Set  l.J 


Double  Entry— Ledger. 


5 


Dr. 

Others  notes  received. 

Bills   Rec'ble 

.      Others'  notes  disposed  of. 

cv. 

1878 

1878 

Jan. 

1 
20 

To  Flour, 

Oat8  &  Wh't, 

1565 

1 

3 

1050 
515 

Jan. 

28 

By  Cash, 

Notes  received,  |1565 
"      disp'd  of,       515 

3 

515 

. 

«      on  hand,  |1050 

Dr. 


Outlay. 


6 

^Vheat. 


Cr. 


1878 

1878 

Jan. 

10 

To  Bills  Payable, 

Returns,    .    ,    .  $570 
OutUy,  .    .   .   .     500 

Net  rtturns,  .  .    $70 

2 

500 

Jan. 

12 
20 
22 

By  Cash, 

Bills  Rec'ble, 
Cash, 

670 

2 

3 
3 

125 
115 
330 

Dr.        Our  notes  redeemed.  BlllS       Pa.ya.l3le.  Ournotes  issued.  Or. 


Notes  oulstand'g,  f  500 


1878 
Jan. 


10 


By  Wheat, 


500 


8 


k 


Dr. 

Outlay. 

Expense 

Or 

1878 
Jan. 

14 

30 

To  Cash, 
it 

2 

3 

50 
100 

Outlay,  1150 

150 

117 


DOL 

rBL 

.E  i: 

.n: 

rRY- 

-L 

iEDGER. 

[Set 

1. 

9 

Dr, 

Oialay.                                      Oats.                                   Returns. 

Cr. 

1878 

1878 

Jan. 

18 

To  Geo.  Davis, 

Returns,    .   .   .  $850 
Outlay,.   .  .   .    750 

2 

750 

Jan. 

20 
29 

By  Bills  Rec'ble, 
Cash, 

85C 

3 
3 

400 
450 

Net  returns, .  .  $100 

10 


Dr,  Our  %  against  him.  GeOrgG      DaVlS.        His  %  against  us.  Qv, 


We  owe  him,  |750 


1878 

Jan. 


18 


By  Oats, 


750 


11 


D)\  Our  %  against  him.  J.      Hatha^Way.  nis  %  against  us.  Qv. 


:  owe  him,  $8-250 


1878 
Jan. 


By  Flour, 


8250 


12 

Br,  Our  %  against  him.  JonaS      Clark.  His  %  against 


Cr. 


1878 
Jan. 


27 


To  Flour, 


lie  owes  us,  $6000 


118 


STATEMENT    OF    RESULTS. 

We  are  enabled  now  to  exhibit  the  current  condition  of  our 
business  during  the  month,  with  the  results  thus  far  accomplished. 
The  Ledger  accounts  present  the  following  facts : — 


Dr, 


TRIAL   BALANCE.— FACE   OF    LEDGER. 


Cr, 


15750 

9920 

1750 

1565 

500 

150 
750 


0000 


36385 


Outlay Flour,     .     .    .  Eetums 

Our  %  ag'st  them.  Smith  &  Sons,  .  Tlieir  %  agn'st  us. 

jReceived Cash,    ....  Paid  out 

Our%ag'nsthim.  Peter  Cooper,  His  %  against  us.  . 
Others'  notes  rec'd.  Bills  Rec'ble,  Others' notes  disp. of 

Outlay Wheat,    .     .     .  Eetums 

Our  notes  red''m''d.  Bills  Pay'ble,  Our  notes  issued.    . 

Outlay Expense, 

Outlay Oats,    ....  Eetums 

Our  %  ag'nst  him.  George  Davis,  His  %  against  us.  . 
Our  %  ag'nsthim.  J.  Hathaway,  .  Ms  %  against  us.  . 
Our  %  ag'nsthim.  JONAS  Clark,  .  Bis  %  against  us. . 
EquUibrium, 


17300 
6000 
1650 

515 
570 
500 

850 

750 

8250 


36385 


The  above  statement  is  called  a  "  Trial  Balance  "  for  the  reason 
most  apparent ;  it  is  a  trial  to  ascertain  if  the  debits  and  credits  on 
the  Ledger  are  equal,  or  halance.  It  does  not,  as  some  suppose, 
prove  the  Ledger  to  be  absolutely  correct,  as  there  are  many  cir- 
cumstances under  which  the  Ledger  may  balance,  and  yet  be  wrong. 
This  form  of  Trial  Balance,  however,  is  so  nearly  a  test  that  under 
ordinary  circumstancps  it  may  be  considered  satisfactory.  By 
observing  the  footings  it  will  be  seen  that  they  exactly  agree  witli 
those  of  the  Journal,  which  could  rarely  be  the  case,  were  any  of 
the  Journal  entries  omitted  in  posting ;  and  as  the  footings  of  the 
Journal  columns  also  tally  with  that  of  the  Day  Book,  it  is  almost 

119 


STATEMENT   OF   KESULTS. 

conclusiYe  that  all  the  original  entries  have  found  their  way  into 
the  Ledger.  There  will  remain  but  two  chances  of  error  in  the 
accounts,  viz. :  from  improper  Journal  entries,  or  from  posting  to 
the  wrong  accounts. 

In  order  to  afford  this  additional  test,  we  have  found  it  neces- 
sary to  carry  into  the  Trial  Balance  the  total  footings  of  the 
Ledger.  If  we  desired  only  to  test  the  halances,  this  would  not 
be  necessary,  as  will  be  seen  from  the  following  example : 


TRIAL   BALANCE.— DIFFERENCES. 


Dr. 


Cr. 


1  FlOUB,        .      .      .   mt  Returns,  .     .     .  Gain, .    . 

2  Smith  &  Sons,  .  We  owe  them,     .    .  Liability, 

3  Cash,     ....   Amount  on  hand,    .  Resource, 

4  Peter  Cooper,  He  owes  vs,    .   .   .  Resource, 

5  Bills  Rec'ble,  Amount  on  hand,  .  Resource, 

6  Wheat,    .     .     .  Net  Returns,  .    .    .  Gain,.   . 

7  Bills  Pay'ble,  Our  notes  outsfg,  .  Liability, 

8  Expense,      .    .  Outlay, loss,  .  . 

9  Oats,    ....  Net  Proceeds, .    .    .  Gain, .  . 

10  George  Davis,  We  owe  him,  .   .   .  Liability, 

11  J.  Hathaway,  .  We  owe  him,  .   .   .  Liability, 

12  Jonas    Clark,  .   Re  owes  us,      .     ,     .  Resource, 

Equilibrium, 


8270 
1750 
1050 


150 


6000 


17220 


1550 
6000 


70 
500 

100 

750 

8250 


17220 


We  have  here  a  test  of  equal  debits  and  credits  quite  as  satis- 
factory as  the  other,  and  much  more  brief,  upon  the  principle  of 
cancellation;  that  is,  permitting  a  debit  to  offset  a  credit  of  the 
same  amount,  and  vice  versa.  These  forms  have  each  its  peculiar 
advantages,  and  it  is  often  found  convenient  to  combine  them  in 
one.  Examples,  of  this  latter  method  will  be  found  in  a  more 
advanced  portion  of  the  book. 

In  the  Trial  Balance  of  ^'Differences"  it  will  be  seen  that  each 
Ledger  account  expresses  one  of  the  four  results  previously  men- 

120 


STATEMENT  OF   RESULTS. 

tioned,  viz.:  a  resource,  a  liability,  a  gain,  or  a  loss.  By  a  careful 
classification  of  tliese  facts  we  are  enabled  to  present  one  of  the 
vital  facts  of  Double  Entry,  viz.;  that  the  net  gain  or  loss  in  busi- 
ness exactly  corresponds  with  the  increase  or  diminution  of  wealth. 
The  following  will  more  fully  illustrate  this  fact : 


1.  RESOURCES  AND    LIABILITIES. 


Resources.. 


3  Cash,     ....  Amount  on  hand,.    .  $8270  00 

4  Peter  Cooper,  He  owes  us,  ....  1750  00 

5  Bills  Rec'ble,  .  Notes  on  hand, .    .    .  1050  00 
12  Jonas  Clark,    .  m  owes  us,  ....  6000  00 


iiabilities.. 


2  Smith  &  Sons,  , 

7  Bills  Payable, 

10  George  Davis, 

11  J.  Hathaway, 


We  owe  them,  .  .  . 
Our  notes  outstand''g. 
We  owe  him,     .    .    . 

l(  U  II 

Present  Worth, 


6000  00 
500  00 
750  00 

8250  00 


2.  GAINS  AND    LOSSES. 


1     Flour, 
0    Wheat, 
9    Oats,  . 


-Gains.. 


Net  Returns, 


.Losses. 


8    Expense,      ,    .     Outlay, 


1550  03 

70  00 

100  00 


Net  Gain,    .    . 


121 


1720 


150 


1570 


EXAMPLES  FOB  PRACTICE. 

By  comparing  the  numerals  in  these  statements  with  those  in 
the  Trial  Balance,  it  will  be  seen  that  all  the  Ledger  accounts  are 
used,  and  that  the  original  purpose  of  each  account  is  fully  recog- 
nized. The  statement  of  Gains  and  Losses  will  afford  a  more  prac- 
tical idea  of  the  advantages  of  double  entry  than  could  be  enforced 
in  any  other  manner.  The  bare  assertion  that  all  gains  are 
the  result  of  an  increase,  and  all  losses  of  a  decrease  in  wealth 
could  nofc  be  denied ;  but  the  proof  of  the  assertion,  drawn  from 
the  Ledger  itself,  as  indicated  in  the  above  statements,  will  carry 
conviction  which  must  be  conclusive  and  abiding. 

Commencing  business  without  capital,  it  will  be  easily  under- 
stood that  the  present  loorth,  or  net  ca2)ital  at  any  time,  must  exactly 
correspond  with  the  net  gain. 

From  these  illustrations  we  derive  the  following 

RULES. 

/. — To  find  the  net  gain  ;  Subtract  the  sum  of  aU  the  losses  from  the 
sum  of  all  the  gains  ;  or,  Subtract  the  capital  at  commencing  from  ilie 

CAPITAL  AT  CLOSING. 

^. — To  find  the  present  worth:  Subtract  the  liabilities  from  the 
RESOURCES;  or,  Add  the  net  gain  to  the  net  investment. 


EXAMPLES    FOR    PRACTICE. 

Example  I. — A.  commenced  business  with  the  following  investment. 
Cash  in  hand,  $300 ;  Bank  deposits,  $4000 ;  Merchandise,  $5000  ;  Notes, 
$2500.  His  losses  and  gains  were  as  follows :  Gain  on  mdse.,  $1575  ;  Do.  on 
Shipment  speculations,  $5000.  Loss  on  expense,  $300 ;  Do.  on  bad  debts, 
$1200. 

What  was  his  net  gain  f     What  his  capital  at  the  dose  of  business  ? 

Ans.—'Set  gain,  $50T5.    Cap.  at  closing,  $16,875. 

Example  II. — B.  commenced  business  with  a  cash  capital  of  $3795.83.  A1 
the  end  of  the  year  his  resources  and  liabilities  were  as  follows : 

Resources :  Mdsa  unsold,  $5725  ;  Cash  on  hand,  $3875-90 ;  Notes,  $1500; 


EXAMPLES  FOR  PRACTICE. 

Personal  accounts,  $8500.  Liabilities :  Bills  payable,  $8000 ;  Personal  accounts, 
$3500. 

Wiat  is  he  worth  at  the  end  of  the  year  ?    How  much  did  he  gain  f 

^n«.— Present  worth,  $8100.90.    Gain,  $4305.07. 

Example  III. — C.  commenced  business  without  a  capital.    At  the  end  of 
the  year  his  Ledger  exhibited  the  following  balances  : 


Br. 


Cf. 


Cash,-     -     -     - 
Mdse.,     -    -    - 
John  Johnson, 
Robert  Blake, - 
Silas  B  a  roll, 
Andrew  Smiley, 
Bills  Receivable, 
Bills  Payable,  - 
Expense,  -    -    - 


4500 

1500 
1200 


1900 

_^75 
9275 


1575 


1875 
4725 

1100 


9275 


What  has  teen  his  gain  ?     What  is  his  capital  at  the  close  of  the  year,"* 


Example  IV. — The  following  Trial  Balance  shows  the  full  condition  of 
my  business  at  the  close  of  a  year.  Required  a  statement  showing  gains  and 
losses,  resources  and  liabilities. 


Dr. 


Cr. 


Cash, 

Merchandise,  -  - 
Real  Estate,  -  - 
Andrew  Simpson, 
William  Matthews, 
Expense,  -  -  - 
Bills  Receivable,  - 
Bills  Payable..  -  - 
Henry  Martin,  -  - 
Abram  Guilford,  - 


10397 

6792 

5000 

5620 

10000 

12000 

4000 

2500 

8000 

9750 

1200 

7000 

5000 
1500 

500 

3434 

1500 

1000 
47597 

47597 

84 


16 
~00 


♦  This  and  the  succeeding  example  should  be  rendered  in  the  form  of  the  Statement  on 
page  121. 

123 


PRACTICAL    EXERCISES. 

[  To  be  written  up  after  the  manner  of  Set  1.  ] 

Transactions.— First  Series. 

Jan.  /. — Commencsd  Business  without  Capital.    Bo't  of  S.  S.  Packard  on  %, 

Mdse.  amounting  to  $5750 Sold  John  R.  Penn,  for  Cash,  10 

yds.  Broadcloth,  @  $5;  3  do.  Vest  Satin,  @  $8 Paid  Cash  for 

Stationery  and  Postage,  $10. 
^.— Sold  J.  H.  Goldsmith,  on  %,  1  Vest  Pattern,  $7.50 ;  Trimmings  for 

same,  $3  ;  50  yds.  Amoskeag  Sheeting,  @  12^. 
S, — Sold  J.  M.  Bradstreet,  on  his  note  @  60  ds.,  1  case  Boots,  24  pairs, 

@  $3.50  ;  25  yds.  Flannel,  @  50# Sold  E.  A.  Charlton,  for  Cash, 

1  box  Hosiery,  $10;  75  yds.  Lowell  Prints,  @  lOf. 
^.— Paid  S.  S.  Packard,  Cash  on  %,  |50. 
^. — Sold  Robert  Baker,  invoice  of  Shirting  and  Fancy  Cloths,  for  $3700 ; 

Received  in  payment,  Cash,  $3000  ;  Balance  charged  on  ^. 
9. — Paid  store  rent  in  Cash,  $100 Received  Cash  in  f uU  of  J.  H. 

Goldsmith's  %,  $ . 

/(9._Sold  James  S.  Packard,  on  %,  20  yds.  Broadcloth,  @  $3.75 ;  50  do. 

Cassimeres,  @  $1. 
/5. — Sold  C.  J.  Dietrich,  for  Cash,  12  pairs  Ladies'  Congress  Gaiters,  @ 

$2 ;  1  case  Misses'  Tipped  Shoes,  24  pairs,  $1.25  ;  3  cases  Men's 

Double  sole  Boots,  36  pairs,  @  $4. 
/4.— Paid  Clerk's  Salary  in  Cash,  $50 Sold  J.  C.  Bailey,  for  Cash, 

1  doz.  Balmoral  Skirts,  12  @  $2 ;  1  piece  Mous.  de  Laine,  75  yds., 

@  W  ;  1  do.  Wamsutta  Sheeting,  50  yds.,  @  W. 
fS, — Bo't  of  James  Dawes,  on  our  note  @  3  mos.,  invoice  of  Fancy 

Broadcloth,  amounting  to  $2500 Sold  Rob't  C.  Spencer,  for 

Cash,  2  pieces  Broadcloth,  50  yds.,  @  $3.50;  1  do,  Lowell  Prints, 

25  yds.,  @  \2^. 
/^.— Paid  S.  S.  Packard,  Cash  on  %,  $2000 Sold  Henry  Ivison,  on 

% ,  150  yds.  Wamsutta  Sheeting,  @  15/  ;  50  yds.  Broadcloth,  @  $4. 
/<^.— Received  Cash  of  James  S.  Packard,  in  full  of  %, Sold 

Richmond  Kingman,  for  Cash,  3  doz.  Elastic  Hoop  Skirts,  36  @  $3 ; 

4  doz.  Balmoral  do.,  48  @  $2.25. 

124 


EXERCISES  FOR  THE   LEAR:n:ER. 

20, — Sold  Henry  Blakeman,  for  Cash,  1  piece  Irish  Linen,  50  yds.,  @ 
75^  ;  3  do.  Lowell  Prints,  150  yds.,  @  \^f  ;  5  do.  Amoskeag  Sheet- 
ing, 250  yds.,  @  14^. 

2f, — Sold  J.  C.  Bryant,  on  %,  2  cases  Ladies'  Tipped  Gaiters,  48  pairs, 
@  $2  ;  5  do.  Boys'  Double-sole  Boots,  60  pairs,  @  $1.50. 

22, — Paid  Cash  for  petty  expenses,  $15.50. 

^J.— Rec'd  Cash  on  Robert  Baker's  %,  $350 Paid  S.  S.  Packard, 

Cash  on  %,  $500 Sold  Lorenzo  Fairbanks,  on  ^,50  yds. 

Broadcloth,  @  $4 ;  75  do.  Cassimeres,  @  $1.25. 

27 » — Sold  James  Smith,  for  Cash,  3  pieces  Cambric  Muslin,  60  yds.,  @ 

25^  ;  3  do.  Scotch  Plaid,  120  yds.,  @\\f Sold  J.  McMillan,  on 

his  note  @  30  ds.,  40  yds.  Black  Doeskin,  @  $1.25;  8  pieces  Merri- 
mack Prints,  250  yds.,  @  10/. 

30, — Sold  Peter  McGrath,  for  Cash,  our  entire  stock  of  goods,  amount- 
ing, per  Inventory,  to  $3450 Paid  S.  S.  Packard,  in  full  of  %, 

$3200. 


T  RIAL    Balance. 

The  following  Trial  Balance  shows  the  condition  of  the  Ledger  accounts 
after  writing  up  the  foregoing  transactions. 

The  student  should  render  his  statement  therefrom  after  the  manner  of 
the  statement.  Set  I. 


Face  of  Ledger. 


Br, 


Cr. 


S.  S.  Packard,  -  • 
Merchandise,    -     ■ 

Cash, 

Expense,  -  -  - 
J.  H.  Goldsmith,  ■ 
Bills  Receivable,  - 
Robert  Baker,  -  • 
James  S.  Packard, 
Bills  Payable,  -  • 
Henry  Ivison,  -  - 
J.  C.  Bryant,  -  • 
L.  Fairbanks,  -    < 


5750 

5750 

8250 

8971 

7747 

70 

5925 

175 

50 

15 

50 

15 

171 

50 

700 

350 

125 

125 
2500 

222 

50 

186 

293 

75 

23637 

45 

23637 

45 
50 

50 


45 


125 


^ET    2.— pOUBLE    ^NTRY. 


(In  Colors.) 


DAY-BOOK,  JOURNAL,  LEDGER,  AND 
AUXILIARIES. 


LEDGER  CLOSED,  AND  RESULTS  SHOWN  IN  AN  IMPROVED  FORM  OF 
BALANCE  SHEET,  WITH  FULL  EXPLANATIONS. 


!ProsveT*ovL8. 


127 


REMARKS. 

This  set  is  a  continuation  of  Set  1,  although  the  nature  of  the 
business  undergoes  a  change.  The  merchandise  represented  in 
.jthe  previous  set  being  all  disposed  of,  we  now  invest  in  a  more 
'miscellaneous  stock,  comprising  a  general  assortment  of  groceries 
and  provisions.  Instead  of  keeping  a  distinct  account  with  each 
article  of  traflBc,  as  in  Set  1,  we  classify  all  under  the  title  of 
^^Merchandise."  This  is  the  usual  business  method,  and  should 
always  be  adopted,  except  where  it  is  essential  to  know  the  gains 
and  losses  on  each  particular  kind  of  property. 

Having  a  net  capital  at  commencement,  the  first  entry  must 
pertain  to  the  existing  resources  and  liabilities.  Stock,  or  the 
proprietor,  is  credited  with  the  total  investment,  and  debited  with 
the  liabilities  assumed,  according  to  Principle  1. 

The  term  "Sundries"  is  here,  for  the  first  time,  used  in  its 
technical  sense.  It  means  sundry  accounts,  or  sundry  items,  and 
is  convenient  as  a  Journal  expression,  and  to  avoid  the  necessity 
of  enumerating  the  items  which  comprise  the  totals  carried  to  the 
Ledger  accounts.  This  convenience  will  be  immediately  apparent 
by  comparing  the  Ledger  entries  of  this  set  with  those  of  the 
preceding. 

The  object  and  method  of  "  closing  the  Ledger "  is  also  fully 
illustrated;  a  point  which  the  student  should  not  pass  lightly 
over.  The  great  difficulty  in  learning  the  science  of  Accounts 
from  a  text-book,  exists  in  the  tendency  to  copy  the  forms  and 
exercises  mechanically  without  a  proper  understanding  of  the 
principles. 

The  business  aspect  presented  by  the  forms  of  this  set,  will  at 
once  commend  them  to  the  student,  as  models  for  his  emulation. 
The  red  inh  entries,  in  particular,  are  intended  to  remove  all  the 
obstacles  to  a  full  and  clear  understanding  of  the  instructions 
given. 

In  short.  Set  3  is  presented  as  embracing,  in  completeness,  the 
essential  qualities  of  Double  Entry ;  and  as  such,  it  is  commended 
to  careful  attention. 

128 


SET2.J         Double  Entry— Day -Book. 

J^ew  York,  February  1,  1880. 


Commenced  Business  this  day  with  the  following  Re- 
sources and  Liabilities,  taken  from  previous  Ledger : 


RESOURCES. 


Cash  on  hand, 
Notes  and  Drafts, 
Peter  Cooper's  account, 
Jonas  Clark's  " 


$8270  00 
1050  00 
1750  00 
6000  00 


LIABILITIES. 


Notes  outstanding, 
Smith  &  Sons'  account, 
George  Davis,         " 
James  Hathaway's  " 


1500  00 

6000  00 

750  00 

8250  00 


Bought  of  Comstock  &  Co.,  for  Cash, 

10  hhds.  N.  O.  Mol.,  600  gal., 
10     "      Cuba  Sug.,  9500  lbs., 
17  bags  Rio  Coffee,   1575  " 
20  hf.  ch.  Ool.  Tea,  1080   " 
10  tierces  Rice,  5000  " 


@  40^  $240  00 
"  5^  475  00 
"  W  252  00 
"  W  540  00 
"    4|)^    22500 


Sold  S.  S.  Randall,  on  % ., 

3  gals.  Molasses, 
200  lbs.  Sutrar, 
150    "    Coffee, 


@50^ 
"  16^ 


$1  50 
12  ool 
24  00  1 


s 


Sold  James  W.  Lusk,  on  his  Note  @  30  ds., 

2  hhds.  Sugar,  2100  lbs.,  @    6^     $126  00 

10  hf.  chests  Tea,  540  lbs.,  "  55)^       297  00  , 


Paid  Cash  to  Geo.  Davis  in  full  of  % 


17070 


15500 


1733 


37 


423 


750 
d5512 


50 


50 


129 


2 


Double  Entry— Day  -  Book. 

JS^ew  York,  February  4,  1880. 


[Set  2. 


t/ 

Sold  Henry  C.  Spencer,  on  %, 
2  hhds.  Molasses,  120  gals., 

■        '  ■ 

Amount  forward, 

35512 
54 

250 
67 

82 
210 

18 

753 

118 

50 

/ 

0 

Bought  of  J.  A.  Tilford,  on  our  Nc 

10  tubs  Lard,  400  lbs., 
20  boxes  Soap,  1400  lbs., 
5  brls.  Pork,  1000  lbs.. 

te  @  60  ds., 

@  13^      52  00 

"    7/'      98  00 
"  W    100  00 

1 

V 

'Sold  Harmer  Smith,  for  Cash, 

2  brls.  Pork,  400  lbs., 
1  tierce  Rice,  500  lbs.. 

@10i^    42  00  1 
"    5f      25  00  1 

1/ 

6 

Sold  B.  F.  Carpenter,  on  %, 

2  tierces  Rice,  1000  lbs., 
1  bag  Rio  Coffee,  150  lbs.. 

@   5^f    55  00 

"  18^      27  00 

/ 

Bought  of  Clarence  Doubleday,  f ( 

10  brls.  Potatoes, 

1000  lbs.  Eng.  Dairy  Cheese, 

3r  Cash, 

@  $3  00      30  00 

18;^  180  00 

/ 

7 

Sold  James  Reed,  for  Cash, 

10  lbs.  Coffee, 
3  boxes  Soap,  210  lbs., 

@  18)^        1  80 
-    Sj^      16  80 

60 

/ 

8 

Bought  of  Robert  Hanaford,  for  C 

10  hhds.  Hav.  Sugar,  11000  lbs., 
3     "      N.  0.     "        3700  " 

ash, 

@    5^    550  00 
"    5^f  203  50 

50 

i 

/ 

9 

Sold  Henry  Van  Dyck,  on  %, 

2  hhds.  Havana  Sugar,  1970  lbs.. 

@   Q^ 

20 

37065 

80 

130 


Set  2.]  DoUBLE    EnTRY— DaY  -  BOOK, 

:f{ew  York,  February  10,  1880, 


/ 

Paid  Jambs  Hathaway,  Cash  on  %, 

Amount  forward^ 

37065 
4000 

95 
29 

17 
100 

37 
54 

22 
44 

80 

/ 

12 

Sold  James  Hathaway,  on  %, 

1  brl.  Pork,  200  lbs., 

1  bag  Rio  Coffee,  110  lbs., 

1  hbd.  Hav.  Sugar,  900  lbs.. 

"  18^ 

$22  00 

19  80 
54  00 

80 

/ 

13 

Sold  L.  Fairbanks,  on  %, 

100  lbs.  Eng.  Dairy  Cheese, 
1  brl.  Potatoes, 

@25^ 

$25  00 
4  00 

/ 

Sold  Henry  Van  Dyck,  on  %, 

10  lbs.  Coffee, 

50    "    Eng.  Dairy  Cheese, 

50    '*    Rice, 

@18^ 

"  25;^- 

$1  80 
12  50 

2  75 

05 

/ 

15 
Paid  Cash  for  rent  of  store. 

/ 

Sold  J.  T.  Calkins,  for  Cash, 
150  lbs.  Eng.  Dairy  Cheese, 

(^mf 

50 

/ 

17 
Rec'd  Cash  of  Henry  C.  Spencer, 

in  full  of  %, 

«/ 

18 

Sold  S.  S.  Randall,  on  %, 

25  lbs.  Tea, 
50    "    Lard, 
20    "    Rice, 

@  56^ 

"  15;^ 
«     5^ 

$14  00 
7  50 
1  00 

50 

/ 

Sold  Peter  Cooper,  on  %, 
2  brls.  Pork,  400  lbs., 

@  11^ 

41465 

65 

131 


Double  Entry— Day  -  Book.         [set  2. 

Jfew  York,  February  22,  1880. 


/ 

Sold  E.  F.  Hill,  on  %, 

Amount  forward. 

41465 

65 

1  hf.  chest  Tea,  54  Ihs., 

@  m 

82 

40 

/7t  0> 

'Zo 

/ 

Received  of  Jonas  Clabk,  in  full  of  %, 

Cash, 

Note,  @  90  ds.. 

$3000  00 
8000  00 

6000 

/Co 

V 

Paid  Smith  &  Sons,  Cash  on  %, 

3000 

/ 

Sold  George  Davis,  on  %, 

2  hhds.  N.  0.  Molasses,  120  gal 

.,    @44f^ 

53 

60 

(it  ft 

i;t» 

/ 

Paid  Cash  for  our  note,  favor  of  J. ' 

R.  Wheeler, 

500 

Sold  E.  C.  Bradford,  for  Cash, 

V 

10  lbs.  Rio  Coffee, 
10    "    Tea, 

@  19^        $1  90 
"  50i^          5  00 

50    "    Rice, 

"    "^f         3  50 

10 

40 

2i 

\  Sold  Edwin  Morgan,  for  Cash, 

«/ 

1  tierce  Rice,  500  lbs., 

2  brls.  Potatoes, 

@         6^    $30  00 
"     3  00         6  00  ^ 

86 

28 

/ 

Paid  clerk's  salary,  in  Cash, 

100 

51198 

05 

132 


Set  2.]       ^       DoUBLE    EnTRY— JOURNAL. 


Xew  York,  February  1,  1880. 

Dr. 


Cb. 


Sundries, 

Cash, 

Bills  Receivable, 

Peter  Cooper, 


To  Stock, 


4   ;  Jonas  Clark, 


1 
7 
8 
9 
10 


11 
6 


Stock, 


To  Sundries, 
"  Bills  Payable, 
"  Smith  &  Sons, 
"  George  Davis, 
"  J.  Hathaway, 


Merchandise, 


To  Cash, 


S.  S.  Randall, 


To  Merchandise, 


3 

Bills  Receivable, 


To  Merchandise, 


George  Davis, 


To  Cash, 


4 


Henry  C.  Spencer, 


To  Merchandise, 


5 


Merchandise, 


To  Bills  Payable 


Cash, 


To  Merchandise, 


133 


8270 
1050 
1750 
6000 


15500 


1732 


37 


423 


750 


64 


250 


67 


50 


50 


17070 


500 
6000 

750 
8250 


1732 


87 


423 


750 


54 


250 


67 


50 


85883 


50 


Double  Entry— Journal.  csbts. 


2 


J\rew  York,  February  6,  1880, 

Db.  Cb. 


13 
6 


10 
5 


10 


14 


B.  F.  Carpenter, 


Amounts  forward, 


To  Merchandise, 


// 


Merchandise, 


To  Cash, 


Cash, 


To  Merchandise, 


8 


Merchandise, 


To  Cash. 


9 


Henry  Van  Dyck, 


To  Merchandise, 


10 


James  Hathaway, 


To  Cash, 


James  Hathaway, 


L-  Fairbanks, 


To  Merchandise, 

IS 


To  Merchandise, 


14 


13    ,  Henry  Van  Dyck, 
6  To  Mdse., 


15 

1    5 


15 


Expense, 


To  Cash, 


Cash, 


To  Merchandise, 


134 


210 


18 


753 


118 


4000 


95 


29 


17 


100 


87 


41345 


50 


60 


50 


20 


80 


05 


50 


15 


210 


18 


763 


118 


4000 


95 


17 


100 


37 


50 


60 


50 


80 


05 


50 


41345     15 


Set  2.]  DoUBLE    EnTRY— JOURNAL. 


Kew  York,  February  17,  1880. 

Db.  Cb. 


5 
12 


11 
6 


16. 
6 


15 


Cash, 


Amounts  forward, 

To  H.  C.  Spencer, 

18 


S.  S.  Randall, 


To  Merchandise, 
M 


Peter  Cooper. 


To  Merchandise, 


OBj  F.-  Hell, 


To  Merchandise, 


Sundries, 

Cash, 

Bills  Receiyable, 


To  Jonas  Clark, 


25 


Smith  &  Sons. 


To  Cash, 


George  Dayis, 


To  Merchandise, 


Bills  Payable, 


To  Cash, 


Cash, 


To  Merchandise, 


Cash, 


To  Merchandise. 


Expense, 


To  Cash, 


135 


41345 
54 


22 


44 


8000 
3000 


3000 


53 


500 


10 


100 


51198 


15 


50 


40 


60 


40 


05 


41345 
54 

22 

44 


6000 


3000 


53 


500 


10 


100 


51198 


15 


50 


40 


60 


40 


05 


Double  Entry— Ledger. 


Dr. 


1 
Stock. 


[Set  2. 
Cr. 


1880 
Feb. 

1 
28 

To  Sundries, 
Balance^ 

1 

Ll9 

15500 

nos 

05 

1880 
Feb. 

1 
28 

By  Sundries, 
Loss  &  Gain, 

1 
l5 

17070 
533 

05 

17603 

05 

17603 

D5 

D 

r. 

Bills 

Receivable. 

Cr 

1880 
Feb. 

1 

3 

23 

To  Stock, 
Mdse., 
J.  Clark, 

1 
1 
8 

1050 
423 

8000 

1880 
Feb. 

28 

By  Balance^ 

1.19 

IMS 

4473 

4473 

3 


Dr, 

Peter  Cooper. 

Cr 

1880 
Feb. 

1 

20 

To  Stock, 
Mdse., 

1 

3 

1730 
44 

II1880 

Feb. 

28 

By  Balance^ 

Ll9 

mu 

1794 

1794 

Dr. 

Jonas 

Clark 

Cr 

1880 
Feb. 

1 

To  Stock, 

1 

6000 

1880 
Feb. 

38 

By  Sundriee, 

3 

6000 

136 


Set  2.] 


Double  Entry— Ledger. 


Dr, 


5 

Cash. 


Cr. 


1880 

— 

1880 

— • 

Feb. 

1    1 

'o  Stocfc, 

1 

8270 

Feb. 

1 

By  Mdse., 

1 

1732 

t( 

5 

'  Mdse., 

u 

67 

" 

3 

"  Geo.  Davis, 

" 

750 

(( 

7 

4                 4i 

3 

18 

60 

u 

6 

"  Mdse., 

2 

210 

(i 

15 

I            u 

" 

37 

50 

11 

8 

u           u 

" 

753 

50 

i( 

17 

'  H.  C.  Spenceii 

8 

54 

(I 

10 

"  J.  Hathaway, 

u 

4000 

i( 

23 

'  Jonas  Clark, 

•" 

3000 

(( 

15 

"  Expense, 

" 

100 

(I 

26 

'  Mdse., 

" 

10 

40 

(I 

25 

"  Smith  &  Sons, 

3 

8000 

(k 

27 

i       it 

86 

t( 

26 
28 

"  Bills  Payable, 
'i  Expense, 
"  Baiance, 

Ll9 

500 
100 

ShS 

11493 

SO 

11493 

60 

{.Id 

(3 

' 

11 

Dr. 


6 

Merchandise. 


Cr. 


1880 

1880 

r" 

1 

— 

Feb. 

1 

To  Cash, 

1 

1732 

Feb. 

2 

By  S.  S.  Randall, 

1 

37 

50 

" 

5 

"  Bills  Payable, 

u 

250 

" 

3 

"  Bills  Rec'ble, 

" 

423 

•( 

6 

"  Cash, 

2 

210 

(t 

4 

"  H.C.Spencer, 

" 

54 

4i 

8 

tt     It 

" 

753 

60 

" 

5 

"  Cash, 

" 

67 

»i 

98 

''  Low  A  Gain, 

Ll8 

755 

05 

" 

6 

"  B.  F.Carpent'r 

2 

82 

■•>  J 

(I 

7 
9 

"  Cash, 

"  H.VanDyck, 

M 

18 
118 

60 
20 

li 

12 
13 

"  J.  Hathaway, 
"  L.  Fairbanks, 

" 

95 
29 

80 

u 

14 

"  H.VanDyck, 

" 

17 

05 

\:/ 

<i 

15 

18 

"  Cash, 

♦'  S.  S.  Randall, 

3 

37 
22 

50 
50 

^    / 

*' 

20 
22 

"  Peter  Cooper, 
"  E  F.  Hill, 

(( 

44 
32 

40 

it 

25 

"  Geo.  Davis, 

" 

53 

60 

V  \/ 

(( 

26 

"  Cash, 

u 

10 

40 

27 

28 

11      (i 

"  Baianceilm.), 

1.19 

36 

9500 

ms 

66 

8678 

65 

137 


Double  Entry— Ledger. 


8 


[Set  S. 


Dr, 

Bills 

Payable. 

Gr. 

1880 
Feb. 

26 
28 

To  Cash, 
Balance^ 

8 

Ll9 

600 

950 

1880 
Feb. 

1 
5 

By  Stock, 
Mdse., 

1 
1 

500 
250 

750 

750 

Dr. 

Smith  &  Sons. 

Cr, 

1880 
Feb. 

i 

''''Tatnoe. 

8 

Ll9 

3000 

sooo 

1880 
Feb. 

1 

By  Stock, 

1 

6000 

6000 

6000 

Dr, 

George 

Davis. 

Cr. 

1880 
Feb. 

3 

To  Cash, 
To  Mdse., 

1 

3 

750 

1880 
Feb. 

1 

By  Stock, 
By  Balance, 

1 

Ll9 

750 

Feb. 

25 

63 

00 

Feb. 

28 

6S 

60 

lO 


Dr, 

James 

Hathaway. 

Cr 

1880 
Feb. 



10 

To  Cash, 
Batanhe, 

2 

1 

Ll9 

4000 
95 

80 

1880 
Feb. 

1 

By  Stock, 

1 

8260 

8250 

00 

82S0 

138 


Set  2.] 


Double  Entry— Ledger. 


Dr. 

s.  s. 

11 

Randall. 

Cr, 

1880 
Feb. 

2 

18 

To  Mdse., 

1 

8 

87 
22 

60 
50 

Feb. 

28 

By  Balance, 

Li9 

60 

60 

60 

13 


Dr. 

Henry 

C. 

Spencer. 

Or, 

1880 
Feb. 

4 

To  Mdse,, 

1 

54 

1880 
Feb. 

17 

By  Cash, 

8 

54 

13 


Dr, 

Henry 

Van 

Dyck. 

Or. 

1880 
Feb. 

9 
14 

To  Mdse., 

3 

118 
17 

20 
05  i 

1880 
Feb. 

28 

By  Balance, 

Ll9 

ISB 

ts 

135 

25 

135 

2B 

Dr. 


14 

L.    Fairbanks. 


Or. 


1880 
Feb. 


13 


To  Mdse. 


1880 
Feb. 


28 


By  Balance, 


Ll9 


t9 


Dr. 


15 

Expense. 


Cr, 


Feb. 


15 


To  Cash, 


100 
100 


201 


1880 
Feb. 


By  Loss  db  Gain, 


1.18 


too 


900 


139 


Dr, 

DOU 

BL 

E    J^ 
E. 

^NTRY— L 

16 

F.  Hill. 

/EDGER. 

[Set 

Cr 

2. 

Feb. 

22 

To  Mdse., 

8 

32 

40 

1880 
Feb. 

28 

By  Balance, 

Ll9 

St 

IsO 

Dr. 


17 

B.  F.  Carpenter. 


Cr. 


1880 

1880 

— 

Feb. 

6 

To  Mdse., 

2 

83 

Feb. 

28 

By  Balance, 

Ll9 

8t 

= 



1 

8 

— 

Dr. 

Loss  and  Gain.                           Cr. 

1880 

1880 

Feb. 

3? 

To  Expense, 

Stock, 

Ll5 
Ll 

200 

5SS 

783 

05 
05 

Feb. 

28 

By  Mdse., 

Ii6 

733 

05 

788 

06 



L — I 

V 

^ 

—  . 

I 

' — 

Dr. 

I^esouraes.                 Balance.               Liahilitiea.                  Cr. 

1880 

1880 

" 

—     '-■ — T 

~" 

^ 

Feb. 

28 

To  Mdse., 

l6 

2500 

Feb. 

28 

By  Bills  Payable,    '"^ 

250 

" 

Bills  Rec'ble, 

LiJ 

4473 

u 

Smith  &  Sons,    '^ 

3000 

u 

P.  Cooper, 

l3 

1794 

u 

J.  Hathaway,     lIO 

4154 

2© 

u 

Cash, 

l5 

348 

M 

Stock,                i  Ll 

2103 

05 

i( 

Geo.  Davis, 

l9 

53 

60 

" 

S.  S.  Randall, 

Lll 

60 

" 

H.  Van  Dyck, 

Ll3 

135 

25 

u 

L.  Fairbanks, 
E.  F.  Hill, 

Ll4 

Ll6 

29 
32 

40 

u 

B.F.Carpen'r 



82 

9507 

26 

9507 

85 

140 


^  .  4  . 


9 


-a  OS  cr»  *>.  CO  1-'  o 


to  M      L.  Fol. 


«  3  §  S| 

00    i&   CO   o 


B 


s's 


8^ 


^ 


S  •  8S 


SS 


-3    §    -3    ti    rl 

.    .    .   gg 


? 


gis 


S^8 


Sg§ 


S  8 


141 


ORDER  AND  PURPOSE  OF  CLOSING  THE  LEDGER. 

Iif  the  preceding  set  it  was  thought  best  to  leave  the  Ledger 
in  its  open  or  current  condition,  the  results  of  the  business  being 
shown  in  a  separate  statement.  When  the  object  is  to  know 
simply  the  condition  of  the  business,  this  method  is  sufficient;  but 
when  it  becomes  necessary  to  mark  the  progress  of  the  business  in 
some  enduring  manner  upon  the  Ledger,  the  accounts  must  be 
"closed,"  and  the  balances  exhibited,  either  under  the  account 
itself,  or  in  some  other  account,  of  similar  import.  From  the 
statement  in  connection  with  the  previous  set,  the  student  has 
learned  that  the  Double  Entry  Ledger  contains  two  classes  of 
accounts ;  one  showing  the  present  condition  of  the  business,  by 
representing  all  its  resources  and  liabilities,  and  the  other  showing 
its  progress,  by  representing  its  particular  gains  and  losses.  For 
the  purpose  of  distinction,  and  as  a  proper  designation  of  their 
character,  we  designate  the  former  of  these  classes,  Fi2!^^ancial, 
and  the  latter  Busij^ess  accounts.  By  Fi]!5"ancial  accounts,  there- 
fore, is  meant  those  which  show  the  financial  condition;  and  by 
Business,  those  which  show  the  progressive  steps  and  characteris- 
tics of  the  business.  The  student  who  has  acquired  the  foregoing 
instructions,  will  have  no  difficulty  in  making  this  classification. 

The  object  of  "closing"  the  Ledger  is  to  put  an  end  to  its  cur- 
rent condition  by  absorbing  the  Business  accounts ;  for  inasmuch 
as  the  proprietor  is  to  be  credited  with  his  net  investment,  when- 
ever that  net  investment  is  increased  by  gains,  his  account  should 
get  the  benefit  of  it.  As  it  would  be  impracticable  to  carry  the 
separate  gains  and  losses  to  the  proprietor's  account  when  they 
accrue,  they  are  permitted  to  remain  in  the  accounts  producing 
them,  until  such  periods  as  may  be  deemed  best  to  transfer  them. 
This  is  usually  done  once  a  year,  and  in  some  establishments  every 
six  months,  thus  making  an  era  in  the  business,  and  restoring 
the  Ledger  to  its  proper  condition  of  showing  only  resources  and 
liabilities. 

14$ 


CLOSIN^G  THE  LEDGER. 


PROCESS    OF    CLOSING. 

It  is  supposed  that  the  student  has  gone  through  with  the 
labor  of  journalizing  and  posting  the  transactions  in  Set  2,  and 
that  his  Ledger  accounts  present  an  equilibrium  of  debits  and 
credits.  To  test  this  fact,  before  proceeding  farther,  we  will  take 
an  abstract  of  the  Ledger  technically  called  a 


Dr. 


TRIAL    BALANCE. 


Or, 


Differences. 

Face  of  Ledger. 

Face  qf  Ledger. 

Differences. 

15500 

.  .  .  Stock 

.  .     17070 

1570 

4473 

4473 

.  .  .  Bills  ReceivabL 

3  .    . 

1794 

1794 
6000 

.  .  .  Peter  Cooper 
.  .  .  Jonas  Clark   . 

.  .       6000 

348 

11493 

50 

.  .  .  Cash 

.  .     11145 

50 

1766 

95 

2945 

500 

3000 

50 

.  .  .  Merchandise  . 
.  .  .  Bills  Payable 
.  .  .  Smith  &  Sons 

.  .       1178 

750 

.  .       6000 

55 

250 
3000 

53 

60 

803 

60 

.  .  .  George  Davis 

750 

4095 

80 

.  .  .  James  Hathawj 

ly   .       8250 

4154 

20 

60 

60 
54 

.  .  .  S.  S.  Randall 
.  .  .  Henry  C.  Spenc 

er    .           54 

135 

25 

135 

25 

.  .  .  Henry  Van  Dye 

k.  . 

29 

29 

.  .  .  L,  Fairbanks. 

200 

200 

.  .  .  Expense  .  .  . 

32 

40 

•      32 

40 

.  .  .  E.  F.  Hill   .  . 

82 

82 

.  .  .  B.  F.  Carpenter 
.  .  .  Equilibrium  . 

8974 

20 

51198 

05 

.  .  .     51198 

05 

8974 

20 

The  above  is  the  most  comprehensive  form  of  the  Trial  Balance, 
and  one  to  be  commended  for  its  utility.  It  will  be  seen  that  the 
footings  of  the  "Face  of  Ledger^'  columns  exactly  agree  with  the 
footings  of  the  Day-Book  and  Journal ;  which  aJBfords  evidence  that 
all  the  transactions  have  found  their  way  to  the  Ledger.  The 
columns  of  "  Differences,"  which  must  also  balance,  afford  a  test 
of  the  results  of  each  account. 

Having  satisfied  ourselves  that  the  transactions  have  been  prop- 
erly posted,  we  now  proceed  to  close  the  Ledger  accounts.  It  must 
not  be  forgotten  that  the  object  of  closing  the  Ledger  is  to  present, 

143 


CLOSING  THE  LEDGER. 

in  a  proper  manner,  both  the  present  condition  of  our  business  and 
its  progress.  Its  present  condition  can  be  shown  by  a  list  of  its 
resources  and  liabilities ;  and  its  progress  by  a  list  of  its  gains  and 
losses. 

By  a  careful  examination  of  the  facts,  it  will  be  seen  that 
resources  are  shown  by  an  excess  of  the  debit  side  of  Financial 
accounts,  and  liabilities  by  an  excess  of  the  credit  side  of  Financial 
accounts ;  and  that  losses  are  shown  by  an  excess  of  the  debit  side 
of  Business  accounts,  and  gains  by  an  excess  of  the  credit  side  of 
Business  accounts.  This  will  suggest  the  propriety  of  opening 
two  accounts  for  these  general  results :  one  to  contain  the  resources 
and  liabilities,  and  the  other  the  gains  and  losses.  We  will  now 
open  these  accounts  under  the  titles  of  "Loss  and  Gain,"  and 
"Balance,"  the  former  to  contain  the  results  of  the  Business  ac- 
counts, and  the  latter  of  the  Financial  accounts.  Before  proceed- 
ing to  close  the  accounts,  we  must  see  if  they  are  all  in  a  condition 
to  show  the  results  desired.  The  Merchandise  account,  as  it  now 
stands,  shows  an  excess  of  the  debit  side,  and  would  therefore  rep- 
resent a  loss,  if  the  merchandise  were  all  sold.  The  account  itself 
does  not  show  whether  the  property  is  all  sold;  and  the  only  means 
of  ascertaining  the  facts  in  the  case,  is  to  take  an  actual  inventory, 
or  a  valuation  of  that  which  remains  unsold.  When  this  value  is 
ascertained,  the  Merchandise  account  should  be  credited  with  it, 
and  Balance  account  debited.  The  Merchandise  account  will  then 
be  competent  to  show  the  gain  or  loss  on  merchandise.  We  have 
estimated  the  unsold  merchandise  in  this  case  to  be  worth  $2500, 
which  amount  we  enter  on  the  credit  side  of  Merchandise  account 
in  red  inlc,^  and  transfer  the  same  immediately  to  Balance  account. 
The  accounts  are  now  in  a  condition  to  close ;  and  we  will  take 
them  in  their  order.  The  first  account  (after  stock,  which  is  the 
proprietor's  own  account)  is  Bills  Eeceivable.  This  account  repre- 
sents a  resource  consisting  of  other  people's  notes  on  hand ;  the 
debit  side  showing  the  notes  received,  and  the  credit  side  those 
disposed  of,  if  any.  We  close  the  account  by  entering  the  difference, 
in  red  ink,  on  the  credit  side,  and  footing  up  the  sides,  drawing 
double  red  lines  underneath.     The  red  ink  entry,  or  balance,  is 

*  An  entry  in  red  ink  on  the  Ledger,  denotes  that  the  amount  thus  written  is  to  be  trans- 
ferredy  either  to  some  other  account,  or  to  another  position  under  the  same  account.  It  also 
shows  that  the  entry  is^rs^  made  in  the  Ledger,  not  having  passed  through  the  usual  prelim- 
inary books  of  entry.  Red  ink  entries  are  always  transferred  to  the  opposite  side  from  where 
they  are  first  written,  for  the  reason  that  they  indicate  an  excess  of  that  side. 

144 


CLOSING  THE  LEDGER. 

transferred  immediately  to  the  deUt  side  of  Balance  account.  The 
next  account,  Peter  Cooper,  is  closed  in  the  same  way.  The  next, 
Jonas  Clark,  already  balances,  and  we  close  it  by  simply  ruling 
the  double  red  lines.  The  next.  Cash  account,  is  closed  in  the 
same  manner  as  Bills  Receivable,  the  balance  being  transferred  as 
a  resource  to  Balance  account.  The  Merchandise  account  shows  a 
gain,  and  the  balance  is  transferred  to  the  credit  side  of  Loss  and 
Gain  account.  Bills  Payable  account  shows  a  UaMlity,  and  the 
balance  is  transferred  to  the  credit  side  of  Balance  account.  Smith 
&  Son's  account  also  shows  a  liahility,  and  the  balance  is  trans- 
ferred to  the  credit  side  of  Balance  account.  George  Davis' 
account  shows  a  resource,  and  the  balance  is  transferred  to  the 
debit  side  of  Balance  account.  James  Hathaway's  account  shows 
a  liability,  and  is  transferred  to  the  credit  of  Balance.  S.  S.  Ean- 
dalFs,  Henry  Van  Dyck's,  and  L.  Fairbank's  accounts,  all  show 
resources,  and  are  transferred  to  the  debit  side  of  Balance.  Expense 
account  shows  a  loss,  and  is  transferred  to  the  debit  side  of  Loss 
and  Gain.  E.  F.  Hill's  and  B.  F.  Carpenter's  accounts  both  show 
a  resource,  and  are  transferred  to  the  debit  of  Balance. 

We  have  now  the  results  of  all  the  accounts  exhibited  under 
the  heads  of  Loss  and  Gain  and  Balance,  and  if  the  balances  have 
been  properly  transferred,  these  accounts,  together  with  the  (un- 
closed) Stock  account,  must  be  in  equilibrium.  To  test  this,  we 
next  take  a  Trial  Balance  of  these  three  accounts,  which  we  call  the 


SECOND  TRIAL   BAUNCE. 


Dr, 


Cr, 


Stock  -    -    - 
Loss  and  Gain 
Balance   -     -     - 


15500 

200 

9507 


25207 


25 
25 


17070 
733 

7404 


25207 


05 
20 


25 


Having  thus  satisfied  ourselves  that  the  balances  have  been 
properly  transferred,  we  now  proceed  to  accomplish  the  grand 
object  of  closing  the  Ledger,  by  carrying  the  net  gain  from  the 
Loss  and  Gain  to  the  Stock  account.  The  Stock  account  now  con- 
tains the  capital  invested  increased  by  the  gain,  which  must,  of 
course,  equal  the  present  worth,  as  shown  by  the  Balance  account. 
Wo  now  close  Stock  account  into  Balance,  which  must  produce 

145 


CLOSING  THE   LEDGER. 

an  equilibrium  of  the  Balance  account,  and  complete,  in  that 
account,  the  record  of  resources  and  liabilities. 

The  Balance  account  is  used  in  these  sets  for  its  convenience  in 
collecting,  under  one  title,  all  the  resources  and  liabilities.  The 
same  effect  may  be  produced  by  bringing  down  the  balances  under 
the  financial  accounts.  This  latter  method  is  adopted  in  business, 
and  particularly  where  the  record  is  continued  in  the  same  Ledger. 

From  these  remarks  and  applications  we  are  prepared  to  submit 
the  following  order  of  closing  the  Ledger,  which  the  student  will 
do  well  to  observe  particularly,  and  to  follow  out  in  practice. 

ORDER    OF    CLOSING. 

^irsi, — Open  an  account  with  "Loss  and  Gain"  (if  not 
already  opened),  and  another  with  "  Balance,"  the  former  to  con- 
tain the  losses  and  gains,  and  the  latter  the  resources  and  lialilities. 

Second, — Ascertain  from  the  inventory  if  any  property  re- 
mains unsold;  and  if  so,  credit  each  account  for  which  such  prop- 
erty was  originally  debited,  with  the  value  of  that  unsold,  making 
the  entry  in  red  ink,  ^^^j  Balance,"  and  transfer  the  amount 
directly  to  the  debit  side  of  Balance  account,  making  this  entry 
in  hlacTc  inh,  "To  Merchandise,"  or  "To  Real  Estate,"  or  any 
other  account  from  which  the  amount  is  transferred.  .The  Ledger 
accounts  will  each  show,  now,  one  of  the  four  following  results, 
viz. :  a  Resource,  a  Liability,  a  Gain,  or  a  Loss. 

Third, — Omitting  Stock  (or  the  Partners'  accounts),  com- 
mence with  the  first  account  in  the  Ledger.  First  ascertain  which 
of  the  above  results  it  shows,  and  make  the  closing  entry  accord- 
ingly. If  the  difference  represent  a  resource  or  a  liability,  enter 
upon  the  smaller  side,  in  red  ink,  "  To,"  or  "  By  Balance,"  as  the 
case  may  be,  and  transfer  the  amount  in  hlack  ink  to  the  opposite 
side  of  the  Balance  account.  If  the  difference  represent  a  gain  or 
bss,  enter  on  the  smaller  side  in  red  ink  "To"  or  "By  Loss  and 
Gain,"  and  transfer  the  amount  in  the  same  manner  to  Loss  and 
Gain  account.  Close  all  the  accounts  (except  Stock  or  Partners'), 
and  transfer  the  balances  as  directed.  The  Loss  and  Gain  account 
will  now  show  on  the  debit  side  all  the  losses,  and  on  the  credit 
side  all  the  gains,  the  difference  being  the  net  loss  or  net  gain. 
The  Balance  account  will  show  on  the  debit  side  all  the  resources, 
and  on  the  credit  side  all  the  liabilities,  the  difference  being  the 
real  interest  or  present  investment  of  the  proprietor  or  proprietors, 

146 


BALANCE  SHEETS. 

jFourtk, — Take  a  second  Trial  Balance,  or  a  Trial  Balance  of 
the  remaining  open  accounts :  Stock  (or  Partners'),  Loss  and  Gain, 
and  Balance.  If  the  balances  have  been  properly  transferred,  the 
debits  and  credits  of  these  accounts  taken  together  must  be  equal. 

^l/lk, — Close  Loss  and  Gain  account  into  Stock,  or,  if  it  be 
a  partnership  business,  into  the  partners'  accounts,  dividing  the 
gain  or  loss,  according  to  agreement.  The  Stock  or  Partners' 
accounts  will  now  show  the  original  investment  increased  by  the 
gain,  or  decreased  by  the  loss ;  the  difference  being  the  present  net 
investment.  Inasmuch  as  the  Balance  account  shows  the  same 
thing,  they  must,  of  course,  agree. 

Sixth, — Close  Stock  (or  Partners'  accounts)  into  Balance 
account,  which  must  equalize  that  account,  it  showing  now,  on 
one  side,  the  total  resources,  and  on  the  other  side  the  total  liabili- 
ties, and  presenting,  in  the  most  condensed  form,  the  exact  present 
condition  of  the  business. 


BALANCE     SHEETS. 

In  commercial  usage  a  "Balance  Sheet"  signifies  the  systematic 
arrangement  of  facts,  for  the  purpose  of  exhibiting  at  a  view  the 
condition  of  business.  The  forms  in  use  are  various,  according  to 
the  necessities  of  the  occasion  or  the  ingenuity  of  the  accountant. 
Of  these  the  example  given  on  page  141  comprises  the  most  com- 
plete and  symmetrical  of  which  we  have  a  knowledge.  The  follow- 
ing explanation  will  be  found  serviceable  in  preparing  this  sheet 
for  the  entries  : 

/.  Take  a  sheet  of  paper  of  proper  size,  and  for  a  border,  if 
such  is  desired,  rule  double  red  lines  around  the  margin. 

2 ,  Eule  the  parallel  head-lines,  leaving  proper  space  for  double 
captions,  as  in  the  example. 

3 ,  Ascertain  the  number  of  Ledger  accounts  to  be  repre- 
sented; which  will  embrace  all  the  accounts  in  the  Trial  Balance 
that  do  not  canceL*  If  the  business  is  that  of  a  single  proprietor, 
usually  called  "  Stock "  business,  rule  in  pencil  as  many  lines  as 

*  Should  there  be  a  large  number  of  persor.al  accounts,  it  will  be  found  difficult  to  include 
them  all  separately  in  this  form.  In  such  case  it  is  customary  to  employ  the  two  general 
titles,  "Accounts  Keceivable,"  and  "Accounts  Payable,"  the  one  embracing  all  amounts 
owing  to  us  on  personal  account,  and  the  other  all  amounts  owing  hy  us.  This  curtailment 
will  enable  the  facts  of  any  common  business  to  bo  shown  in  this  form. 

147 


BALAN"CE   SHEETS. 

will  contain  all  the  accounts  and  five  additional.  If  it  be  a  part- 
nership business  with  two  or  more  partners,  rule  three  additional 
lines  for  each  partner ;  thus,  for  "  Stock  "  business,  five  lines  more 
than  all  the  accounts ;  for  two  partners,  eight  lines  more  than  all 
the  accounts;  for  three  partners,  eleven  lines  more,  and  so  on. 

4 .  Lay  off  proper  spaces  for  debit  and  credit  money  columns ; 
first  for  the  footings  of  Ledger  Accounts,  second  for  Gains  and 
Losses,  third  for  Stock,  or  if  partners,  for  each  partner — and 
fourth  for  Kesources  and  Liabilities ;  also,  for  a  single  money  col- 
umn for  Inventories,  and  for  Ledger  titles  and  their  Ledger  folios. 
The  position  of  these  columns  will  be  seen  in  the  example  given. 
These  spaces  can  best  be  appropriated  by  using  a  pair  of  dividers, 
and  giving  each  of  the  captions  its  just  proportions. 

6»  After  denoting  the  proper  space  for  each  heading,  which  can 
best  be  done  with  pencil,  commencje  to  rule  in  red  ink  at  the  right 
hand  and  bring  all  the  lines  of  the  two  captions,  "  Real  Accounts  " 
and  "  Stock,"  or  one  of  the  partners,  down  to  the  lower  pencil  line. 
For  the  other  partners  drop  two  lines.  For  Losses  and  Gains  drop 
two  lines  in  Stock  business,  and  one  additional  for  each  partner. 

6,  Rule  the  foot  lines  as  shown,  and  the  schedule  will  be  ready 
to  receive  the  accounts. 

The  process  of  showing  results  is  precisely  similar  in  its  order, 
and  the  results  the  same  as  in  '*  closing  the  Ledger,"  which  has 
already  been  so  fully  explained. 

There  are  many  kinds  of  business  statements  in  use,  each  pos- 
sessing some  peculiar  merit,  and  all  having  the  same  general  purpose 
in  view,  viz. :  that  of  exhibiting  the  real  and  progressive  condition 
of  the  business  represented.  The  forms  hitherto  used  in  this  work, 
and  particularly  the  one  on  page  121,  are  both  simple  and  compre- 
hensive, and  would  possibly  be  preferred  by  one  not  versed  in  the 
processes  and  technicalities  of  Book-keeping ;  but  we  know  of  no 
form  that  compasses  so  much  within  such  limited  space,  as  that 
described  above.  The  example,  on  page  141,  will  sufficiently  indi- 
cate the  points  of  excellence,  and  give  the  student  a  model  for  his 
emulation.  Let  him  remember  that  in  no  one  thing  does  the  pro- 
ficiency of  a  practical  accountant  more  plainly  manifest  itself  than 
ill  the  matter  of  neatness  in  arrangement  and  execution.  The  art 
of  ruling  tastefully,  unimportant  as  it  may  seem,  is  one  not  easily 
acquired  nor  overrated. 

148 


EXAMPLES    FOR    PRACTICE. 


The  student  is  requested  to  render  statements  after  the  fornr 
on  page  141,  from  the  following  materials : 


Example  1. 


TRIAL   BALANCE. 


Dr. 


Cr, 


Stock 

Bills  Receivable 

John  Mason - 

Cash 

Merchandise      -       (Amount  unsold,  $1200) 

Peter  Smith 

Robert  Pendergast 

Expense 

Bills  Payable 

Charles  Ryan    - 


881 

5000 

1500 

1000 

300 

175 

•5794 

67 

4800 

3500 

2759 

4000 

1500 

384 

375 

83 

1500 

1750 

483 

17851 

50 

17851 

50 


50 


Example  2. 


TRIAL   BALANCE. 


Dr. 


Cr. 


Stock  -    

Merchandise      -      (Amount  unsold,  $1000) 
George  Hopkins    -------- 

Robert  Westcott 

Abram  Woodfall 

Peter  Denyse _     .     .    - 

Robert  Rantoul     - 

James  Jackson 

E.  E.  Ellsworth 

Cash 

Expense  

Commission  -     - 

BiliS  Receivable 

Bills  Payable -     - 

Shipment  to  Detroit 

Edward  Rice     -     -     -  

Peter  Ren  wick 

Edwin  C.  Packard 

Benj.  F.  Holmes 

F.  R.  Perley 


149 


141 

78 

3000 

5000 

3700 

1500 

953 

84 

753 

900 

110 

500 

732 

98 

500 

75 

500 

983 

9753 

20 

8748 

90 

450 

183 

22 

1700 

150 

1500 

5000 

4000 

4598 

700 

874 

50 

900 

150 

75 

500 

29340 

96 

29340 

96 

PRACTICAL    EXERCISES. 

[  To  be  written  up  after  the  manner  of  Set  2.  ] 

Transactions. — Second  Series. 

^ed,  /. — Commenced  business  with  the  following  resources  and  liabilities, 
taken  from  the  Balance  Sheet  of  previous  Ledger.*  Resources : 
Cash,  $1822.20;  Bills  Receivable,  $171.50;  Robert  Baker's  ac- 
count, $350  ;  Henry  Ivison's  do.,  $222.50;  J.  C.  Bryant's  do,,  $186; 
L.  Fairbanks'  do. ,  $293. 75  ;   Liabilities :  our  note  favor  of  James 

Dawes,  for  $2500 Bo't  of  Springer  &  Whiteman,  on  % ,  20  bags 

Rio  Coffee,  1670  lbs.,  @  15^  ;  15  tierces  Rice,  7500  lbs.,  @  4^;  15 
hhds.  Cuba  Sugar,  14000  lbs.,  @  5^. 

^.— Bo't  of  Alex.  Cowley,  for  Cash,  12  hhds.  N.  O.  Molasses,  720  gals., 
@  40/  ;  20  boxes  Soap,  1450  lbs.,  @  8f ;  10  brls.  Pork,  2000  lbs., 
@  10/'. 
«?.— Sold  Lewis  Lyman,  on  %,  30  lbs.  Coffee,  @  18,^^ ;  20  do.  Rice,  @  5^/  ; 

100  do.  Sugar,  @  6/ Received  Cash  of  Robert  Baker,  in  full 

of  %,  $ 

4^, — Paid  Cash  for  stationery  and  incidental  expenses,  $20. 

J^.— Sold  Alonzo  Mitchell,  on  %,  1  bag  Rio  Coffee,  80  lbs.,  @  18j^  •, 

20  gals.  N.  O.  Molasses,  @  50/  ;  30  lbs.  Rice,  @  5i/ Bo't  of 

Peter  Duff,  for  Cash,  300  lbs.  English  Dairy  Cheese,  @  20/ ;  250 

lbs.  Butter,  @  18*^ Sold  John  R.  Penn,  on  his  note  @  30  ds., 

5  boxes  Soap,  350  lbs.,  @  10/  ;  6  bags  Rio  Coffee,  485  lbs.,  @  16/. 
^.— Bo't  of  S.  S.  Packard,  on  our  note  @  10  ds.,  40  hf.  chests  T.  H. 

Tea,  2356  lbs.,@  35/ Sold  Charles  Strong,  for  Cash,  10  hf. 

chests  Tea,  580  lbs.,  @  38/  ;  100  lbs.  English  Dairy  Cheese,  @  22/. 
^.— Sold  Samuel  Davis,  for  Cash,  50  lbs.  Butter,  @  20/ ;  50  lbs.  Coffee, 
@  18/  ;  30  gals.  Molasses,  @  50/. 

/^.— Sold  Henry  Dwight.  for  Cash,  30  gals.  Molasses,  @  50/ ;  10  lbs. 
Rice,  @  6/  ;  1  box  Soap,  75  lbs.,  @  10/. 

/5. — Paid  clerk's  salary  in  Cash,    $15 Bo't  of  James  Simpson, 

on  %,  15  brls.  Crushed  Sugar,  2520  lbs.,  @  10/. 

/J. — Rec'd  Cash  on  %  of  Henry  Ivison,  $100 Sold  Thomas  Hunter, 

on  %,  5  hf.  chests  Tea,  275  lbs.,  @  50/;  50  lbs.  English  Dairy 
Cheese,  @  23/  ;  25  lbs.  Rice,  @  5/  -  -  -  -  Sold  Henry  l\ason,  on  %, 
20  gals.  Molasses,  @  50/  ;  3  boxes  Soap,  210  lbs..  @  10/. 

/^.— Rec'd  Cash  in  full  of  J.  C.  Bryant's  %,  $ Sold  W.  H. 

Joeckel,  for  Cash,  2  brls.  Crushed  Sugar,  330  lbs.,  @  11/. 

/7.— Sold  Lewis  Lyman,  on   %,  50  lbs.  Rio  Coffee,  @  20/;   100  lbs. 
Crushed  Sugar,  @  11/. 

/^.— Paid  Cash  in  full,  for  our  note,  favor  of   S.    S.  Packard,  dated 
Feb.  6,  due  this  day,  $824.60. 

♦  See  Trial  Balance,  page  125. 

150 


EXERCISES  FOR  THE  LEARNER. 

<5^.— Sold  Robert  Burns,  for  Cash,  100  lbs.  Crushed  Sugar,  @  ll)^^ 

Received  Cash  of  Henry  Ivison,  in  full  of  %,  $153.50. 

^^.— Paid  James  Simpson  Cash  in  full  of  %,  $353 Sold  Philip 

Stone,  for  Cash,  4  hf.  chests  Tea,  335  lbs.,  @  50;^. 
-^.?.— Sold  Thomas  Hunter,  on  %,  50  lbs.  English  Dairy  Cheese,  @  25f^  ; 
75  do.  Crushed  Sugar,  @  11^;  15  do.  Coffee,  @,  W ;  3  boxes  Soap, 
140  lbs.,  @  10/'. 
^d".— Sold  Alonzo  Mitchell,  on  %,  3  hhds.  Cuba  Sugar,  1850  lbs.,  @  6^ 

Received  Cash  in  full  for  J.  M.  Bradstreet's  note  of  the  3^ 

ult.,  due  March  5,  $98.50  ;  also  for  J.  McMillan's  note,  due  Mar.  \, 
$75.     Total,  $171.50. 
.^7.— Paid  Cash  for  store  rent,  $100. 


STATEMENT. 

The  student  is  expected  to  produce  the  following  results  from 
the  foregoing  transactions  : 

TRIAL   BALANCE. 


Stock 

Bills  Receivable 

Cash 

L.  Fairbanks -     - 

Alonzo  Mitchell    - 

Merchandise  (Amount  unsold,  $2500) 

Bills  Payable 

Springer  &  Whiteman  -     -     -     - 

Lewis  Lyman  - 

Expense  -------- 

Thos.  Hunter 


10 
50 
75 
05 
10 
60 

50 


961 
3334 
1350 


95 
50 
60 


3500 

384 
3343 

393 

137 
3036 

834 

33 
135 
188 
10674     60      10674     60 


3045 

171 

1930 


45 
60 

50 


FINANCIAL   STATEMENT. 


Resources.      Lidbilities. 


Merchandise      -------- 

Bills  Receivable  ------- 

Cash 

L.  Fairbanks ■ 

Alonzo  Mitchell ■ 

Bills  Payable ■ 

Springer  &  Whiteman    .     -     -     -     . 

Lewis  Lyman ■ 

Thos.  Hunter    -    - 

Stock  (Present  Worth) 

151 


3500 
113 

1331 
393 
137 


33 

188 


60 
90 

75 
05 


50 


3500 
1350 


5tp 

30^ 

4586  80   4586  80 


QUESTIONS    FOR    REVIEW. 

Remaeks,  Page  128. 

1.  In  what  sense  is  this  a  continuation  of  Set  1  ? — S.  What  different  plan 
is  adopted  in  the  keeping  of  property  accounts  ? — 3.  When  is  it  customary  tc 
keep  other  than  a  general  Merchandise  account? — 4.  When  the  business 
commences  with  a  capital,  what  is  the  first  entry? — 6.  What  account  is 
credited  with  the  investment?— 6.  What  does  Stock  account  represent? — 
7.  What  is  the  technical  meaning  of  the  term  "  Sundries  ?  " — 8.  Why  is  it 
used  in  Journal  or  Ledger  entries  ? 

Order  and  Purpose  of  Closing  the  Ledger,  Page  142. 

9.  Li  what  condition  was  the  Ledger  of  Set  1  left  ? — 10.  Under  what  cir- 
cumstances is  this  suflBcient? — 11.  When  is  it  necessary  to  "close"  the 
Ledger  accounts? — 12.  When  an  account  is  closed,  how  is  the  balance  or 
difference  exhibited  ? — 13.  How  many  classes  of  accounts  are  there  in  Double 
Entry  I—I4.  What  is  the  distinction  1—15.  What  are  they  called  1—16.  What 
is  meant  by  Financial  accounts? — 17.  What  by  Business? — 18.  What  is 
the  object  of  closing  the  Ledger  ? — 19.  Why  are  the  gains  and  losses  in  busi- 
ness permitted  to  appear  in  the  Business  accounts,  instead  of  being  carried 
directly  to  the  proprietor's  account  ? — 20.  How  often  is  it  customary  to  credit 
the  proprietor  with  his  gains  ? — 21.  To  what  condition  is  the  Ledger  restored 
when  the  gains  and  losses  are  transferred  to  the  proprietor's  account? — 
22.  What  is  the  first  thing  necessary  after  posting  all  the  entries  to  the  Led- 
ger ? — 23.  In  what  sense  is  the  Trial  Balance  a  test  of  the  correctness  of  the 
work  ? — 24.  What  two  features  are  presented  by  the  Trial  Balance  on  page 
143  ? — 25.  How  may  the  present  condition  of  a  business  be  shown  ? — 26.  How 
are  resources  shown  on  the  Ledger  1—27.  How  liabilities  ? — 28.  How  losses  ? — 
29.  How  gains?  —  30.  What  two  accounts  may  be  used  to  show  these 
results  ? — 31.  What  is  contained  in  the  Loss  and  Gain  account  ? — 32.  What  in 
the  Balance  account  ? — 33.  Can  you  learn  from  the  Merchandise  account  the 
value  of  Merchandise  unsold? — 34.  How  is  it  ascertained? — 35.  "WTien  the 
Merchandise  account  is  credited  with  the  inventory  of  unsold  Merchandise, 
what  will  the  account  represent  ? — 36.  What  is  the  process  of  closing  an 
account? — 37.  In  closing  an  account,  why  is  the  difference  placed  on  the 
smaller  side  ? — 38.  What  test  have  we  for  ascertaining  if  the  balances  of  the 
accounts  are  properly  transferred  ? — 39.  What  accounts  are  contained  in  the 
*'  Second  Trial  Balance  ?  " — 40.  Why  will  the  difference  in  the  Stock  account, 
after  the  gain  or  loss  has  been  transferred,  equal  the  difference  in  the  Balance 
account  when  all  the  resources  and  liabilities  have  been  entered  ? — 4I.  Is  it 
necessary  in  closing  the  Ledger  to  open  a  Balance  account  ? — 42.  How  may 
the  same  effect  be  produced? — 43.  What  is  the  first  step  in  the  order  of 
closing?— 44.  Second?—^.  Third?— ^5.  Fourth?— 47.  Fifth?— ^.  Sixth? 

152 


^ET    3. pOUBJ^E    J)nTRY. 


(Corresponding  -with  Set  3,  Part  1.) 


DAY-BOOK  AND  JOURNAL  COMBINED. 


WITH     FULL     STATEMENTS    AND     EXPLANATIONS,    SHOWING     THE    DIS- 
TINCTIONS   BETWEEN   DOUBLE   AND   SINGLE    ENTRY. 


(^izsiness  ^dr^erse. 


153 


REMARKS. 

The  transactions  of  this  set  are  the  same  as  those  in  Set  3, 
Part  I.,  and  are  selected  for  the  purpose  of  showing  the  exact 
difference  between  Single  Entry  and  Double  Entry.  A  careful 
study  of  the  two  sets  in  their  similar  and  dissimilar  points  will 
open  to  the  mind  of  the  student  a  clearer  distinction  between  the 
two  methods  of  accounts  than  could  be  effected  in  any  other  way. 
This  distinction  is  most  apparent  in  the  Ledger  where  it  will  be 
seen  that  the  additional  accounts  required  by  Double  Entry  relate 
exclusively  to  particular  speculations,  and  are  useful,  mainly,  to 
denote  gains  and  losses. 

Another  decided  improvement  in  this  over  the  preceding  set, 
relates  to  the  form  of  the  original  book  of  entry,  which  here 
combines  the  Day- Book  and  Journal.  There  is  no  doubt  as  to 
the  preference  of  this  plan  over  that  of  separate  books.  The  only 
objection  that  can  be  arrayed  against  it  is  the  difficulty  some- 
times of  combining  the  historical  with  the  journal  expression  in  a 
manner  to  preserve  the  unity  of  the  entry  without  destroying  the 
individuality  of  its  parts.  A  little  practice,  however,  will  remove 
this  difficulty,  and  lead  the  student  into  a  concise  and  symmetrical 
form  of  expression,  at  once  comprehensive  and  business-like. 

It  is  not  deemed  necessary  to  repeat  the  auxiliary  forms  of 
Sales-Book,  Cash-Book,  and  Bill-Book,  for  the  reason  that  there  are 
no  improvements  to  suggest.  Auxiliary  books  are  used  for  their 
convenience  in  classifying  the  departments  of  business,  and  do 
not  pertain  necessarily  to  any  particular  theory  or  method  of 
accounts.  In  Single  Entry,  however,  they  are  often  essential  in 
preserving  a  sufficient  record  of  resources  and  liabilities,  which 
in  Double  Entry  are  shown  independently  in  the  Ledger. 

The  manner  of  closing  the  accounts  differs  from  Set  2  only  in 
bringing  down  the  resources  and  liabilities  under  the  accounts 
themselves,  instead  of  transferring  them  to  a  separate  account 
like  "Balance."  A  few  of  the  accounts,  containing  only  one  item, 
are  necessarily  closed,  and  the  balances  brought  down.  This  plan 
is  sometimes  adopted  in  business,  for  the  purpose  of  exhibiting 
the  condition  of  affairs  on  the  Ledger  at  some  certain  date. 

The  method  of  showing  general  results  through  a  detailed 
statement  is  commended  to  the  careful  attention  of  the  student. 

154 


Set  3.J    D.    EnTRY— EXPLANATORY   JOURNAL. 
Albany,  July  1,  1879. 


Db. 


Cr. 


10 
G 


Sundries,  To  H.  B.  Bryant, 

For  investment,  as  follows: 
Merchandise,       As  per  inventory, 
Bills  Receivable,  "    "    Bill  Book, 
Cash,  "     "    Cash  Book, 

John  R.  Penn,    Balance  of  %, 
L.  Fairbanks,  "  " 

Alonzo  Gaston,       "  " 


Sundries,  To  H.  D.  Stratton, 

For  investment,  as  follows  : 
Real  Estate,  House  and  lot  val.  at. 

Cash,*  Am't  in  Union  Bank, 


Expense, 

To  Cash, 

Paid  for  postage  stamps,  pens,  etc, 


Cash, 


To  Merchandise, 
Sold  Robt.  Van  Scliaick,  per  S.  B. 


Cash, 


To  John  R.  Penn, 
Received  on  % . 


Expense, 

To  Cash, 

Paid  for  printing  hand-bills. 


4750 

1500 

1200 

500 

750 

375 


5000 
3000 


39 


250 


10 


17379 


9075 


8000 


39 


250 


10 


17379 


*  Some  houses  keep  a  regular  bank  account  In  their  main  books,  debiting  the  bank  with 
deposits,  and  crediting  it  with  checks  drawn ;  while  others  keep  the  account  only  m  an 
auxiliary  book,  and  connt  the  cash  in  bank  the  same  as  that  in  safe.  We  have,  in  this  in- 
stance, adopted  the  latter  plan. 

155 


D.  Entry— Explanatory  Journal,  lsets. 

Albany,  July  S,  1879. 


Db. 


Cb. 


11 
3 


10 
6 


3 
12 

13 

6 


14 
3 


James  Johnson, 

To  Merchandise, 

Per  Sales  Book. 


Cash, 


To  Merchandise, 
Petty  sales,  per  C.  B. 


4 


Bills  Eeceivable, 

To  Merchandise, 
Sold  E.  H.  Bender,  per  S.  B. 


Expense, 

To  Cash, 
Paid  C.  Jones,  repairing  store. 


Merchandise, 


To  Sundries, 


To  Claflin,  Mellen  &  Co., 

Invoice  of  Boots  and  Shoes. 

"  A.  T.  Stewart  &  Co., 
Invoice  of  Dry  Goods. 

"   Cash, 

Paid  freioflit  on  above. 


E.  B.  Rice, 

To  Merchandise, 
Per  Sales  Book. 


Cash,  • 

To  Alonzo  Gaston, 
Received  in  full  of  %. 


156 


192 


17 


108 


175 


1359 


42 


375 


2269 


50 


20 


50 


45 


65 


192 


17 


108 


175 


575 

757 

27 

42 

375 

2269 


50 


20 


50 


45 


65 


Sets.]  D.  Entry— Explanatory  Journal. 


Albany,  July  7,  1879. 


Db.  Cb. 


10 
6 


15 
3 


13 

6 


Expense, 

To  Cash, 
Paid  clerk  hire. 


8 


Cash, 


To  Merchandise, 
Sold  W.  H.  Clark,  per  S.  B. 


Expense, 

To  Cash, 

Paid  expenses  to  New  York. 
10  


Benjamin  Payn, 

To  Merchandise, 
Per  Sales  Book. 


Cash, 


To  Bills  Eeceivable, 

In  full  of  Robt.  Bruce's  note. 


A.  T.  Stewart  &  Co., 

To  Cash, 
Paid  them  on  % . 


Bills  Receivable, 

To  Merchandise, 

Sold  C.  S.  Sill,  per  S.  B. 


157 


25 


19 


15 


23 


500 


300 


173 


1056 


82 


75 


41 


98 


25 


19 


82 


15 


75 


23 


41 


500 


300 


173 


1056 


98 


D.  Entry— Explanatory  Journal,  [sets. 


Albany,  July  12,  1879. 


Db.  Cb. 


2 
16 


17 
3 


12 
16 


H.  D.  Stratton, 

To  Bills  Payable, 
Accepted  draft  favor  of    P.    R. 
Spencer,  per  B.  B. 


Cash, 


To  Merchandise, 

Received  for  petty  sales,  per  C.  B. 


Amos  Dean, 

To  Merchandise, 

Per  Sales  Book. 


13 


Olaflin,  Mellen  &  Co., 

To  Bills  Payable, 

Our  note  to  balance  % . 

i5 


H.  B.  Bryant, 

To  Cash, 
Paid  liim  On  % . 


Cash, 


To  L.  Fairbanks, 
Received  on  %. 

18 


Cash, 


To  Merchandise, 
Sold  G.  H.  Doty,  per  S.  B. 


158 


75 


33 


180 


575 


75 


350 


252 


1540 


50 


50 


75 


33 


180 


575 


75 


350 


252 


1540 


50 


50 


Set  3.]    D.    EnTRY— EXPLANATORY    JOURNAL. 


Albany,  July  19,  1879. 


Dr. 


Cb. 


10 
6 


18 
3 


6 
18 


10 
6 


6 
17 


10 
6 


Expense, 

To  Cash, 
Paid  for  advertisements  in  the 
Evening  Journal. 

20 


Victor  M.  Rice, 


To  Merchandise, 


Per  Sales  Book. 


Cash, 


To  Victor  M.  Rice, 
Received  on  %. 


Expense, 

To  Cash, 
Paid  petty  expenses  per  C.  B. 

21 


Cash, 


To  Amos  Dean, 
Received  on  %. 


Expense, 

To  Cash, 
Bill  of  carpenter  work,  $175 
drayage,  $5  ;  porterage,  $3. 

22 


Bills  Receivable, 

To  Merchandise, 
Sold  J.  R.  Morgan,  per  S.  B. 


159 


15 


82 


30 


10 


60 


183 


339 


709 


88 


D.  Entry— Explanatory  Journal,  [set  3. 


Mhany,  July  23,  1879. 


Dr. 


Cb. 


19 

3 


6 
14 


20 
3 


16 

6 


10 

6 


James  Sheldon, 


To  Merchandise, 
Per  Sales  Book. 


Cash, 


To  Merchandise, 
Sold  R.  Metcalf,  per  S.  B. 

24 


Cash, 


To  Merchandise, 
Sold  Clias.  Heydon,  per  S.  B. 


Cash, 


To  E.  B.  Rice, 

Received  in  full  of  %. 


WiUiam  Shepard, 

To  Merchandise, 
Per  Sales  Book. 


Cash, 


To  Merchandise, 
Sold  Robt.  Dawes,  per  S.  B. 


Bills  Payable, 

To  Cash, 

Paid  on  Accept,  favor  H.  D.  S. 


Expense, 

To  Cash, 

Paid  clerk  hire. 


132 


234 


106 


42 


37 


163 


75 


25 


815 


24 


45 


55 


20 


44 


132 


234 


106 


42 


37 


163 


75 


25 


815 


24 


45 


55 


20 


44 


160 


Set  3.]    D.    EnTRY— EXPLANATORY    JOURNAL. 


Albany,  July  26,  1879. 


Db. 


Cb. 


21 
3 


John  Belden, 

To  Merchandise, 
Per  Sales  Book. 


A.  T.  Stewart  iS;  Co., 

To  Cash, 
Paid  them  in  full  of  %. 


Cash, 


To  Merchandise, 
Sold  J.  H.  Lansley,  per  S.  B. 

29 


Cash, 


To  Merchandise, 
Sold  W.  H.  Fiquet,  per  S.  B. 


// 


Cash, 


To  John  K.  Penn, 


Received  in  full  of  %. 


SO 


Sundries,  To  Merchandise, 

Sold  Clias.  A.  Seeley,  per  S.  B. 

Cash,  Amount  received, 

Chas.  A.  Seeley,       Balance  on  %, 


161 


216 


457 


138 


154 


250 


75 


107 


1398 


50 


72 


216 


50 


457 


138 


72 


154 


250 


182 


40 


1398 


62 


Double  Entry— Ledger. 


[Set  a 


Dr. 

H.   B.    Bryant. 

Cr. 

1879 
July 

15 
31 

To  Cash, 

Loss  &  Gain, 
Balance, 

4 

l23 

Ll 

75 
352 

86k7 

9075 

94 

06 

00 

1879 
July 

1 

By  Sundries, 
By  Balance, 

1 

Ll 

9075 

9075 

Aug. 

1 

8647 

C6 

Dr. 


H.  D.  Stratton. 


Cr, 


1379 
July 

12 
31 
31 

To  Bills  Payable, 
Loss  &  Gain, 
Balance, 

4 
l6 
l2 

75 
352 

7572 

94 

06 

1879 
July 

1 

By  Sundries, 
By  Balance, 

1 
l2 

8000 

8000 

00 

8000 

Aug. 

1 

7572 

06 

Dr. 


Merchandise. 


Cr. 


1879 

1879 

July 

1 

To  H.  B.  Bryant, 

1 

4750 

July 

1 

By  Cash, 

1 

39 

5 

Sundries, 

2 

1359 

50 

3 

4 

7 

8 

10 

12 

13 
18 
20 
22 
23 

24 
25 

26 
27 
29 
30 
31 

J.  Johnson, 

Cash, 

Bills  Rec^ble, 

E.  B.  Rice, 

Cash, 

Benj.  Payn, 

Bills  Rec'ble, 

Cash, 

Amos  Dean, 

Cash, 

Vict.  M.  Rice, 

Bills  Rec'ble, 

Jas.  Shelden, 

Cash, 

u 

W.  Shepard, 

Cash, 

John  Belden, 

Cash, 

u 

Sundries, 
Balance, 
Loss  &  Gain, 

2 

3 
4 

u 

5 
6 

7 
tt 

u 
u 

l8 

l23 

192 

17 

108 

42 

19 

23 

173 

33 

180 

252 

82 

339 

132 

234 

106 

37 

163 

216 

138 

154 

182 

3000 

2h2 

50 
20 
45 

82 
41 

50 

88 
24 

55 
20 
50 
72 

40 

IS 

6109 

50 

6109 

50 

Aug. 

1 

To  Balance, 

l3 

3000 

162 


Set  3.] 


Double  Entry— Ledger. 


Dr. 


Bills   Receivable. 


Cr. 


1879 

July 

1 

4 

12 

22 

To  H.  B.  Bryant, 
Mdge., 

To  Balance, 

1 
2 
3 
5 

l4 

1500 
108 
173 
339 

20 

1879 
July 

10 
31 

By  CaPh, 
Balance, 

3 

l4 

500 

1620 

20 

2120 

20 

2120 

20- 

Aug. 

1 

1620 

20 

Dr. 


5 

John   R.   Penn. 


Cr. 


1879 
July 


To  n.  B.  Bryant, 


500 


500 


1879 
July 


By  Cash, 


250 
250 

500 


Dr 


6 

Cash. 


Cr. 


1879 

- 

1879 

July 

1 

To  H.  B.  Bryant, 
H.D.Stratton, 

Mdse., 

1 

1200 

3000 

39 

July 

1 

2 
4 

By  Expense, 

1 
2 

5 

10 

175 

2 

J.  R.  Penn, 

" 

250 

5 

Mdse., 

V. 

27 

50 

3 

Mdse., 

2 

17 

50 

7 

Expense, 

3 

25 

7 

A.  Gaston, 

" 

375 

8 

" 

" 

15 

75 

8 

Mdse., 

3 

19 

82 

10 

A.T.Stw.&Co. 

" 

300 

10 

Bills  Rec'ble, 

" 

500 

15 

H.  B.  Bryant, 

4 

75 

12 

Mdse., 

4 

33 

50 

19 

Expense, 

5 

15 

16 

L.  Fairbanks, 

" 

350 

20 

" 

" 

10 

18 

Mdse., 

" 

252 

21 

♦' 

» 

183 

20 

V.  M.  Rice, 

5 

30 

25 

Bills  Payable, 

6 

75 

21 

Amos  Dean, 

" 

50 

" 

Expense, 

" 

25 

23 

Mdse., 

6 

234 

26 

A.T.Stw.&Co. 

7 

457 

24 

i.i. 

" 

106 

31 

By  Balance, 

l6 

5881 

it 

" 

E.  B.  Rice, 

" 

42 

45 

25 

Mdse., 

" 

163 

20 

27 

i> 

7 

138 

72 

29 

J.  R.  Penn, 

11 

154 

250 

30 

Mdse., 

" 

75 

1 

To  Balance, 

l6 

7280 

19 

7280 

19 

Aug. 

5881 

94 

163 


Dr, 


Double  Entry— Ledger. 


L.    Fairbanks. 


[Set  3. 
Cr 


1819 
July 

1 
1 

To  H.  B.  Bryant, 
To  Balance, 

1 
l7 

750 

1879 
July 

16 
31 

By  Cash, 
Balance, 

4 
l7 

350 

LOO 

750 
400 

^= 

750 

Aug. 

Dr. 


8 

Alonzo  Gaston. 


Cr. 


1879 
July 

1 

To  H.  B.  Bryant, 

1 

375 

1879 
July 

7 

By  Cash, 

2 

375 

Dr. 


9 

Real   Estate. 


Cr. 


1879 
July 


Aug. 


To  H.D.Stratton, 


To  Balance, 


l9 


5000 


5000 


1879 
July 


By  Balance, 


l9 


5000 


Dr. 


lO 

Expense. 


Cr. 


1879 

1879 

— 

July 

1 

2 

4 

7 

8 

19 

20 

21 

25 

To  Cash, 

1 

2 
3 

5 

G 

5 
10 

175 
25 
15 
15 
10 

183 
25 

75 

July 

31 

By  Loss  &  Gain, 

l23 

h6S 

75 

463 

75 

463 

75 

164 


Set  3.] 

Dr, 


Double  Entry— Ledger. 

11 

James  Johnson. 


Cr. 


1879 
July 

3 

To  Mdse., 
To  Balance, 

2 

Lll 

192 

1879 
July 

31 

By  Balance, 

Lll 

192 

Aug. 

1 

192 

12 


Dr. 

Clafl 

in, 

Mellen  <5 

>c  Co. 

Cr. 

1879 
July 

15 

To  Bills  Payable, 

4 

575 

1879 
July 

5 

By  Mdse., 

2 

575 

Dr. 


13 

A.  T.  Stewart   &  Co. 


Cr. 


1879 
July 

10 
26 

To  Cash, 

3 

7 

300 
457 

1879 
July 

5 

By  Mdse., 

2 

757 

757 

757 

Dr. 

14: 

E.    B.    Rice. 

Cr. 

1879 
July 

7 

To  Mdse. 

2 

42 

45 

1879 
July 

24 

By  Cash, 

1 

! 

6 

4Sl 

45 

Dr. 


15 

Benjamin   Payn. 


Cr. 


1879 
July 

10 

To  Mdse., 
To  Balance, 

3 

Ll5 

23 

41 

1879 
July 

31 

By  Balance, 

Ll5 

S3 

hi 

Aug. 

1 

23 

41 

165 


Dr. 


Double  Entry— Ledger. 

16 

Bills   Payable. 


[Set  3. 

Cr. 


20 


1879 
July 

23 
31 

To  Cash, 
Balance, 

6 

Ll6 

75 

575 
650 

— - 

1879 
July 

12 
15 

By  H.D.Stratton, 
Claf.  M.  &  Co. 

By  Balance, 

4 

Ll6 

75 
575 

650 

Aug. 

1 

575 

Dr. 

17 

Amos   Dean. 

Cr. 

1879 
July 

13 
1 

To  Mdse., 
To  Balance, 

4 

Ll7 

180 

1879 
July 

21 
31 

By  Cash, 
Balance, 

5 

Ll7 

50 

ISO 

180 

180 

Ang. 

130 

Dr. 

18 

Victor   M.  Rice. 

Cr. 

1879 
July 

20 

To  Mdse., 
To  Balance, 

5 

Ll8 

82 

88 

1879 
July 

20 
31 

By  Cash, 
Balance, 

5 

Ll8 

30 

52 
82 

88 

82 

88 

83 

Aug. 

1 

52 

Dr, 

19 

James   Sheldon. 

Cr. 

1879 
July 

23 
1 

To  Mdse., 
To  Balance, 

6 

Ll9 

132 

24 

1879 
July 

31 

By  Balance, 

Ll9 

m 

HU 

Aug. 

132 

24 

Dr. 

William 

Shepard. 

Cr. 

1879 
July 

25 

To  Mdse., 
To  Balance, 

6 

l20 

37 

55 

1879 
July 

31 

By  Balance, 

l20 

37 

55 

Aug. 

1 

37 

55 

16G 


Set  3.J 
Dr, 


Double  Entry— Ledger. 

21 

John   Belden. 


Dr. 


22 

Chas.  A.  Seeley. 


Cr, 


1879 
July 

36 

To  Mdse., 
To  Balance, 

7 

l21 

1 

216 

50 

1879 
July 

31 

By  Balance, 

l21 

ne 

50 

Aug. 

1 

216 

50 

Cr. 


1879 
July 

30 

To  Mdse., 
To  "Ralnnce, 

7 
l22 

107 

i 

40  i 
1 

1879 
July 

31 

By  Balance, 

l22 

107 

hO 

Aug. 

1 

107 

40 

Dr. 


23 

Loss  and  Gain. 


Cr. 


1879 
July 


To  Mdse., 
Expense, 


1879 

l3 

242 

13 

July 

31 

LlO 

463 
705 

75 
88 

By  n.  B.  Bryant, 
H.D.Stratton, 


352 


705 


167 


STATEMENT. 

The  following  detailed  statement  should  be  carefully  compared 
with  the  Single  Entry  Statement  on  page  67,  that  the  characteristic 
features  of  the  two  systems  may  be  thoroughly  appreciated.  We 
have  designated  the  proper  classification  of  accounts  in  the  Trial 
Balance  and  have  included  all  the  Ledger  accounts,  that  the  general 
footings  may  be  made  to  agree  with  the  footings  of  the  Journal. 
In  rendering  the  Statement,  those  accounts  which  cancel  or  balance, 
are,  of  course,  omitted.  With  this  form  of  Trial  Balance  it  would 
scarcely  be  necessary  to  do  more  than  carry  the  balances  of  the 
accounts  into  the  statement  columns  as  in  the  Statement  on  page 
121 ;  but  this  form  gives  the  philosophy  more  in  detail. 


TRIAL  BALANCE. 

Total  Footings. 

Balances. 

H.  B.  Bryant, 

Financial    -    -    - 

Br. 

Cr. 

Dr. 

Cr. 

1 

75 

9075 

9000 

2 

H.  D.  Stratton, 

Financial    -    -    - 

75 

8000 

7925 

3 

Merchandise, 

Business      -    -    - 

6109 

50 

2867 

37 

3242 

13 

4 

Bills  Receivable, 

Financial    -    -    - 

2120 

20 

500 

1620 

20 

5 

John  R.  Penn, 

Financial   -    -    - 

500 

500 

6 

Cash, 

Financial   -    -    - 

7280 

9 

1398 

25 

5881 

94 

7 

L,  Fairbanks, 

Financial   -   -    - 

750 

350 

400 

8 

Alonzo  Gaston, 

Financial    -    -    - 

375 

375 

9 

Real  Estate, 

Business      -    - 

5000 

5000 

10 

Expense, 

Business      -    -    - 

463 

75 

463 

75 

11 

James  Johnson, 

Financial    -    -    - 

192 

192 

12 

Claf.,  Mellen  &  Co., 

Financial    -    -    - 

575 

575 

13 

A.  T.  Stewart, 

Financial   -    -    - 

757 

757 

14 

E.  B.  Rice, 

Financial    -    -    - 

42 

45 

42 

45 

15 

Benjamin  Payn, 

Financial    -   -    - 

23 

41 

23 

41 

16 

Bills  Payable, 

Financial    -    -    - 

75 

650 

575 

17 

Amos  Dean, 

Financial    -    -    - 

180 

50 

130 

18 

Victor  M.  Rice, 

Financial    -    -    - 

82 

88 

30 

52 

88 

19 

James  Sheldon, 

Financial    -    -    - 

132 

24 

132 

24 

30 

William  Shepard, 

Financial   -    -    - 

37 

55 

37 

55 

21 

John  Belden, 

Financial    -    -    - 

216 

50 

216 

50 

22 

Chas.  A.  Seeley, 

Financial   -    -    - 

107 
25170 

40 
07 

107 

40 

25170 

^ 

17500 

00 

17500 

00 

Mdse.  unsold 
Real  Estate 


INVENTORY.. 


168 


$3000 
5000 


STATEMENT. 

LOSSES  AND  GAINS.— BUSINESS  ACCOUNTS. 


Mebchandisb 


Expense 


Outlay $6109  50 

Returns,     .    $2867  37 
Value  unsold,  3000  00        5867  37 
Jfet  loss . 

Outlay  for  Expenses 

Total  Net  Loss 

ff.  B.  B's  \  net  loss      .      $352  M 
H.  D.  8'8      "     *'    .    .         352  94 


Losses. 


242 

463 


705 


Gains. 


705 


705 


RESOURCES  AND  LIABILITIES.— FINANCIAL  ACCOUNTS. 


■ 

/. — From  Inventories  of  unsold  property. 

Besovrces. 

LiabUities, 

3000 
5000 

1620 

5881 

400 
192 
23 

130 

52 
132 

37 
216 
107 

20 
94 

41 

88 
24 
55 
50 
40 

675 

8647 
7572 

4 

2. — From  Ledger  Accounts. 

Bills  Receivable,    .    Others''  notes  received, 

"     disp.  of, 

"           "     on  hand 

Cash Amount  received     .    . 

"•       paid  out    .    . 

$2120  20 
500  00 

6 

$7280  19 
1398  25 

7 

L.  Fairbanks  .    .    .    Our  %  against  him    . 
Bis    *'        ''      us  .    . 

$750  00 
350  00 

r1 

James  Johnson    .    .    He  owes  us 

15 

Benj.  Patn      ..."""       ....---- 

16 

Bills  Payable     .    .    Our  notes  issued      .    . 

"       "     redeemed     . 

"       "     outstanding 

Amos  Dean  ....    Our  %  against  him    . 

His    "        "      us      . 

$650  00 
75  CO 

17 

$180  00 
50  00 

18 

Victor  M.  Rice   .    .    Oi/r  %  against  him    . 
His    "        "      us      . 
He  owes  us      .... 

$32  88 
30  00 

19 

20 

21 

John  Belden  ..."""       

22 

Chas.  a.  Seelet      ,     "      "     "       ........ 

1 
2 

H.  B.  Bryant  .    .    .    His  net  investment  .    . 

"     "   loss     .... 

His  prksbnt  interest 

H.  D.  Stratton  .    .    His  net  investment  .    . 

"    "   loss     .... 

His  present  interest 

$9000  00 
352  94 

$7925  00 
352  94 

06 

06 

16794 

12 

16794 

12 

169 


EXAMPLES    FOR    PRACTICE. 

The  following  examples  are  to  be  rendered  in  the  form  of  the 
Statement  on  page  169. 


Example  1. 


TRIAL   BALANCE. 


Dr. 


Cr. 


Warren  P.  Spencer,  (Partuer) 
J.  C.  Bryant,  do. 

Merchandise  (Amount  unsold,  $5000) 

Cash 

Bills  Receivable- 

Bills  Payable 

E.  G.  Folsom 

E.  R.  Felton 

Expense      ..-.---     - 


700 

5724 
5024 

12000 

7594 

15752 

25 

9692 

4000 

1500 

9000 

12000 

750 

123 

75 

965 

175 

00 

42501 

42501 

58 
58 

84 


00 


Example  3. 


TRIAL   BALANCE. 


Dr. 


Cr. 


James  W.  Lusk,  (Partner)  -     - 
H.  W.  Ellsworth,      do. 
H.  C.  Spencer,  do. 

Cash .     .    . 

Bills  Receivable  -  .  -  -  - 
Merchandise,  (Inventory,  $1000) 
Real  Estate,   (      do.        5000) 

Expense      

Bills  Payable 

Robert  Paton  .----• 
Samuel  Ogden     _    -    -    -    . 


398 

17594 
7500 
6794 
5000 
150 
4000 
2000 
1400 


72 
28 


44837  00   44837  00 


4500 
5000 
4500 
15S29 
4300 
5382 
125 

5700 


50 
50 


QUESTIONS    FOR    REVIEW. 

Remakes,  Page  154. 

1.  What  is  the  purpose  of  Set  3? — B.  With  what  previous  set  does  it  cor- 
respond?— 3.  Where  is  the  distinction  between  Single  and  Double  Entry  most 
apparent? — 4'  ^o  what  do  the  additional  accounts  in  Double  Entry  relate  ? — • 
6.  For  what  are  they  useful  ? — 6.  What  improvement  has  this  set  over  Set  2  ? 
— 7.  What  is  the  objection  usually  urged  against  combining  the  Day-Book 
jind  Journal  ? — S.  What  is  the  general  purpose  of  auxiliary  books  ? — 9.  For 
what  are  they  used  in  Single  Entry? — W.  In  what  does  the  method  of  closing 
the  accounts  in  this  Ledger  differ  from  the  preceding  ? — Is  it  usual  to  bring 
down  single  items  in  the  Ledger  ? — IB.  When  is  this  proper  ? 

Note.— Let  this  set  be  followed  by  the  "Exerciees"  on  page  69. 

170 


^ET    4. pOUBLE    i^NTRY. 


GENTLEMEN'S  FURNISHING  BUSINESS. 


(PARTNERSHIP.) 


JOURNAL,  CASH-BOOK,  AND  SALES-BOOK, 
USED  AS  PRINCIPAL  BOOKS. 


(gzLstness    ^rosjpeTouLS. 


in 


REMARKS. 

The  characteristic  feature  of  this  set  consists  in  the  peculiar 
arrangement  and  use  of  the  original  books  of  entry.  Hitherto  the 
transactions,  whatever  auxiliary  books  have  been  used,  have  all 
been  entered  in  the  Journal,  and  from  thence  posted  to  the  Ledger. 
This  plan,  although  having  some  advantages,  is  objectionable  upon 
the  ground  of  too  much  labor,  nearly  all  the  transactions  being 
entered  twice  or  more  before  being  carried  to  the  Ledger. 

The  plan  of  posting  directly  from  the  original  books  of  entry, 
such  as  the  Oash-Book,  Sales-Book,  etc.,  is  not  only  practical  and 
business-like,  but  serves,  in  the  most  striking  manner  to  enforce 
the  theory  of  the  science,  and  to  disarm  that  class  of  objection ists 
who  insist  that  Double  Entry  requires  vastly  more  writing  than 
Single  Entry. 

The  only  difficulty  in  the  way  of  posting  directly  from  the  orig- 
inal books  lies  in  the  danger  of  conflicting  the  entries,  or  posting 
the  same  amounts  Uoice.  For  instance,  the  debit  side  of  the  Oash- 
Book  comprises  in  itself  a  double  entry,  which  is  equivalent  to  the 
Journal  entry  "  Cash,  Dr.  To  Sundries."  In  posting  from  the  Oash- 
Book,  the  total  of  the  debit  side  is  carried  to  the  Oash  account  in 
the  Ledger,  and  the  item  comprising  that  amount  to  the  credit  side 
of  the  various  accounts  mentioned,  among  which  is  Merchandise. 
It  is  very  evident  that  if  all  the  Merchandise  sold  be  credited  from 
the  Sales-Book,  the  amount  sold  for  Oash  would  be  credited  tiuice ; 
hence  the  necessity  of  an  extra  column  in  the  Sales-Book  for  Oash 
sales  which  are  omitted  in  posting  from  the  Sales-Book.  The 
special  '^Mdse."  and  "Expense"  columns  in  the  Oash-Book  are  to 
save  the  necessity  of  so  many  special  entries  to  these  accounts  in 
the  Ledger.  The  method  of  posting  from  the  Oash  and  Sales- 
Books  is  extremely  simple.  The  amounts  in  the  "  General "  column 
of  the  Oash-Book  may  be  posted  at  any  time — the  page  of  the 
Ledger  being  indicated  in  a  column  provided  for  that  purpose, 
the  "Mdse."  and  "Expense"  columns  at  the  end  of  the  month,  or 
as  often  as  may  be  best  to  close  the  Oash-Book.  The  sales  for  Oash 
are  checked  off  in  the  Sales-Book,  and  the  amounts  extended  into 
the  "  Oash  "  column.  The  other  accounts  from  the  Sales-Book  may 
be  posted  at  any  time,  the  page  of  the  Ledger  being  indicated  in 
the  proper  column.  The  sales  for  notes  are  marked  inside  the 
margin,  "  B.  R."  and,  of  course,  posted  to  Bills  Eeceivable  account. 
Instead  of  indicating  the  page  from  which  the  transactions  are 
posted,  the  initials  of  the  original  book  are  given  in  the  Ledger. 

172 


Set  4.] 


Double  Entry— Journal, 


Chicago,  Septerriber  1,  1878. 


Dk. 


Cb 


2 

14 


5 
8 
9 

10 
11 


12 
13 


13 
14 


4 
11 


Merchandise, 

To  John  K.  Penn, 
Amount  invested,  per  inventory. 


John  R  Penn, 

To  Bills  Payable, 

Assumed  for  him. 


Sundries,  To  J.  C.  Bryant, 

Amounts  invested. 

Bills  Eeceivable,  J.  Smith's  note,  $750 
H.  Young's  "      ^ 

J.  T.  Calkins,      Balance  of  %. 

E.  R.  Felton, 

J.  H.  Goldsmith,     « 

Jas.  Atwater,  "  " 

P.  0.  Schuyler, 


J.  C.  Bryant,     To  Sundries, 
Liabilities  assumed. 

To  Chas.  Taylor,  Balance  of  %, 
J.  W.  Lusk, 

15 


J.  W.  Lusk, 

To  Bills  Payable, 
Our  note  @  30  ds.  to  bal.  %. 

20 


Bills  Receivable, 

To  P.  C.  Schuyler, 
His  note  @  60  ds.  to  bal.  %. 


173 


6750 


1750 


1500 

500 

376 

1170 

1250 

1104 


900 


400 


1104 


16804 


6750 


1750 


5900 


500 
400 


400 


1104 


16804 


Double  Entry— 

[Set  4. 


Cash. 


25 


27 


29 


S.  S.  Packard,  .    .  Amount  invested,     .    , 

Mdse., T.  W.  W.    Sales  Book, 

Mdse., Petty  salee.    P.  C.  B., 

J.  T.  Calkins,     .    .    On  fl^, 

Mdse., D.V.  B.    Sales  Book, 

Mdse., Petty  sales.    P.  C.  B., 

Mdse., "        "              "     . 

Mdse., J.  A.    Sales  Book,    . 

James  Atwater,  .    On  <%;, 

Mdse., Petty  sales.    P.  C.  B., 

Mdse "         "              "     . 


W.  R    Sales  Book,  . 
On%, 


Mdse., 

J.  T.  Calkins,    .    . 
Bills  Receivable, 

Interest, 

Mdse., Petty  sales.    P.  C.  B., 


J.  Smith's  note, 
On  same, .    .    . 


Mdse., Petty  sales.    P.  C.  B., 

E.  R.  Felton,     .    .    In  full, 

Mdse., Petty  sales.    P.  C.  B., 

Mdse., "         "              "     . 

J.  H.  Goldsmith,      On  «^, 

Mdse., Petty  sales.    P.  C.  B., 

James  At"water,  .    On  o^, 

Mdse., R.  McG.    Sales  Book, 

Mdse., Petty  sales.    P.  C.  B., 

Mdse., "        "              "     . 

Bills  Receivable,  11.  Young's  note,  .    . 

Interest, On  same, 

Mdse., Petty  sales.    P.  C.  B., 


Merchandise,  Cr., 


Cash,  Dr., 


Dr. 


(S-ener'al. 


5000 
200 

750 

150 

750 
34 

1000 

376 

170 
500 


750 
14 


2702 


12.397 


25 


50 


27 


Mdse. 


54 


105 
737 


138' 
128  25 


94 
112 


117 

156 

87 

112 


175 


2702 


174  . 


Cash -Book. 

Set  4.] 


Cash. 


1878 
S«pt. 


General. 


Expense,    .    . 

Charles  Taylo 

Expense, 

Expense, 

Expense, 

Mdse., 

Expense, 

Expense, 

Bills  Payable, 

Interest, 

Expense, 

Expense, 

Expense, 

Expense, 

Expense, 

Expense, 


Postage  stamps,   .    . 

On%, 

2  tons  Coal,  @,  $5,  . 
BUI  of  Stationery,    . 
Hands,  for  shop-work, 
Invoice  Cloths.    J.  B., 

Gas  bill, 

Hands,  for  shop-work, 
Our  note,  favor  H.  B,, 

On  same, 

Clerks'  Salaries,  .    . 
Hands,  for  shop-work, 
Rent  to  September  30,     , 
Porterage  and  Drayage, 
Hands,  for  shop-work, 
Partners'  salaries  to  date, 


Cash,  Cr.,     .... 
Balance  on  hand 


Cr. 


175 


Double  Entry— Sales -Book. 

Chicago,  September  1,  1878. 


[Set  4 


Thekon  W.  Woolson, 

4  doz.  Shirts,  2d  quality, 
6     "    Union  Neckties, 
20  "    Linen  Hdkfs, 
3  pes,  Cassimere,        15( 

Disc,  qff 

Mt.  Pleasant,  la. 

48  @  $1  00         $48  00 

72  "         38<^         27  36 

240  ''         50$       120  00 

3  yds.,    "     1  25         187  50 

4 

V 

9 

V 

10 

General.  1 

Cash. 

650 
900 

639 

363 

89 

737 
1190 

1382  86 
',  5%,                             19  14 

72 

Ira  Packard, 

50  Boys"  Overcoats, 
50     ♦' 
B.  R.                        Note  @ 

Peru,  Ind. 

©  $5  50         $275  00 
"     7  50           375  00 

6  mo. 

D.  V.  Bell,                                           Chicago. 

1  Dress  Suit  for  self,                                       $50  00 
1  Overcoat  for  son,                                            15  00 
1  box  Hdkfs.,                6  doz.  @  $4  00           24  00 

O 

J.  H.  Goldsmith, 

2  pes.  Eng.  Broadcloth, 
50  Military  Coats,  per  o 

Detroit. 

100  yds.  @  $4  00     $400  00 
rder,        "  10  00       500  00 

/ 

James  Allen, 

20  Zouave  Uniforms, 
1  pc.  Striped  Satin,     50 

Disc,  off  Sat 

■ir) 

Dubuque. 

@  $25  00       $500  00 
yds.,   "       5  00         250  00 

$750  00 
in,  @  5%,                     12  50 

50 

> 

James  Atwater, 

1  lot  Ready-mafle  Clothi 
10  Coats,                      ( 
20     " 
50     " 

8  pair  Pants, 
25  " 

50  Vests, 
25      " 
1  Overcoat, 

Madison. 

ng,  viz. : 

a  $3  00                      $3000 
'      3  50                        70  00 
'500                       25000 
'      3  00                        ^00 
'      4  00                       100  00 
'      1  50                        75  00 
'      8  00                        75  00 
15  00 

2189 

22 

1 

176 


Set  4.] 


Double  Entry— Sales -Book. 


Chicago,  Septemher  15,  1878, 


2 


William  Baker, 
5  doz.  Cravats, 
3     " 
9     "     Linen  Ildkfs., 


Amounts  forward, 

Springfield. 

60  @       75<f     $45  00 

36  "  $1  00         36  00 

108  "        SO'p       54  GO 


Disc,  off,  5%, 


$135  00 
6  75 


J.  T.  Calkins, 


North  Bend,  Ind. 

$500  00 
75  00 


50  Military  Coats  (privates),  @,  $10  00 
5         "  "       (officers),      "     15  00 

18  


Bock  Island. 

$250  00 


C.  D.  Bragdon, 

50  ready-made  Coats,  @  $5  00 

100  prs.  Pants,  "     3-  00 

50  doz.  Collars,  "     1  50 

5      "     F.Y.  Shirts,  60"     175 

B.  R.  Note  @  6  mos. 

^0 

George  E.  Harvey,  Greeji  Bay. 

100  Zouave  Uniforms,  @,  $20  00 

50  Military  Coats,  "  Co.  H."     "     10  00 
B.  R.  Note  @  60  ds. 

25 


$2000  00 
500  00 


James  W.  Lusk, 

50  Uniforms  ("Line.  Green'') 
30         •'         (Zouaves) 

28  — 


Chicago. 

$25  00     $1250  00 
15  00         450  00 


Robert  McGrath,                     White  Pigeon. 

20  ready-made  Boy's  Coats,  @  $5  00  $100  00 

30      "         "      Vests,  "     1  50  45  00 

20  doz.  Collars,  "     1  00  20  00 


Disc,  off,  5%, 

—  SO  — 


$165  00 
8  25 


E.  R.  Felton, 

75  Complete  Uniforms, 


Peoria. 


®  $25  00 


Sales  on  time,  to  credit  of  Mdse., 
Sales  for  Cash,  posted  from  C.  B., 
Petty  Sales,  entered  alone  on  Cash  Book, 
Total  Mdse.  sold. 


177 


13 


General. 


575 


730 


2500 


1700 


1875 


Cash. 
1190 


128 


S5 


1475 

1227     05^ 
12271     27 


156 


75 


1475 


Br. 


Double  Entry— Ledger. 


S.  S.  Packard. 


[Set  4- 

Gr. 


1878 
Sept. 


By  Cash, 


5000 


Br. 


John   R.  Penn. 


Cr. 


1878 
Sept. 


To  Bills  Payable, 


1750 


1878 
Sept. 


By  Mdse. 


6750 


Br. 


J.   C.    Bryant. 


Gr. 


1878 
Sept. 


To  Sundries, 


900 


1878 
Sept. 


By  Sundries, 


5900 


Br. 

Bills 

Receivable. 

Gr. 

1878 

1878 

~ 

Sept. 

1 

To  J.  C.  Bryant, 

J 

1500 

Sept. 

17 

By  Cash, 

CB 

750 

20 

P.C.  Schuyler, 

J 

1104 

29 

" 

CB 

750 

1 

Mdse., 

SB 

650 

18 

u 

SB 

730 

20 

(( 

EB 

2500 

Br. 

J.  T 

.  Calkins 

• 

Cr. 

1878 

1878 

Sept. 

1 

To  J.  0.  Bryant, 

J 

500 

Sept. 

2 

By  Cash, 

CB 

206 

15 

Mdse., 

SB 

575 

16 

u 

CB 

150 

178 


Set  4.J 


Double  Entry— Ledger. 


Dr. 


6 

Cash. 


Cr. 


1878 
Sept. 


To  Sundries, 


12397 


1878 
Sept. 


30 


By  Sundries, 


75 


Di\ 


Merchandise. 


Or. 


1878 

1878 

Sept. 

1 

To  J.  R.  Penn, 

J 

6750 

Sept. 

80 

By  Cash, 

CB 

2702 

27 

7 

Cash, 

CB 

3000 

Sundries, 

SB 

9569 

Dr. 


E.   R.   Felton. 


Gr 


1878 

1878 

Sept. 

1 
30 

To  J.  C.  Bryant, 

Mdse., 

J 

SB 

376 

1875 

Sept. 

25 

By  Cash, 

CB 

376 

Dr. 


9 

J.  H.  Goldsmith. 


Or, 


1878 

1878 

Sept. 

1 

To  J.  C.  Bryant, 

J 

1170 

Sept. 

22 

By  Cash, 

CB 

1000 

5 

Mdse., 

SB 

900 

26 

<i 

CB 

170 

Dr. 


lO 

James  At\vater. 


Cr. 


1878 
Sept. 

1 
12 

To  J.  C.  Bryant, 
Mdse., 

J 

SB 

1250 
639 

1878 
Sept. 

10 
27 

By  Cash, 

CB 
CB 

750 
500 

179 


Dr. 


Double  Entry— Ledger. 
11 

P.    C.   Schuyler. 


[Set  4, 

Cr. 


1878 
Sept. 


To  J.  C.  Bryant, 


1104 


1878 
Sept. 


By  Bills  Rec'ble, 


1104 


Dr, 


12 

Charles  Taylor. 


Cr. 


1878 
Sept. 


To  Cash, 


300 


1878 
Sept. 


By  J.  O.  Bryant, 


500 


Dr. 


13 

James   W.    Lusk. 


Cr. 


1878 

1878 

Sept. 

15 
25 

To  Bills  Payable, 

Mdse., 

J 

SB 

400 
1700 

Sept. 

1 

By  J.  C.  Bryant, 

J 

400 

Dr. 


14 

Bills   Payable. 


Cr. 


1878 
Sept. 

15 

To  Cash, 

CB 

1000 

1878 
Sept. 

1 
15 

By  J.  R.  Penn, 
J.  W.  Lusk, 

J 
J 

1750 
400 

15 


Dr. 

Interest 

• 

Cr. 

1878 

1878 

~ 

Sept. 

15 

To  Cash, 

CB 

46 

75 

Sept. 

17 

By  Cash, 

CB 

34 

25 

29 

CB 

14 

50 

180 


Set  4.] 
Dr. 


Double  Entry— Ledger. 

16 

Expense. 


Cr. 


1878 
Sept. 


30 


To  Cash, 


1746 


PRACTICAL   EXERCISES. 

[Continuation  of  Set  4.] 

Transactions. — Fourth  Series. 

The  following  routine  is  a  continuation  of  the  business  of  Set  4,  and  the  transactions 
should  be  entered  in  the  proper  books  and  posted  in  accordance  with  the  plan  and  instruc- 
tions of  the  set,  using  the  same  books,  and  producing  at  the  close  a  general  result  of  the 
whole  business.  As  this  set  is  by  far  the  most  practical  in  the  treatise,  its  peculiar  points 
should  be  thoroughly  impressed  upon  the  mind.  The  student  should  exercise  much  care  in 
the  symmetrical  arrangement  of  the  original  books  of  entry.  The  accompanying  initials 
will  indicate  the  books  to  be  written  up,  and  their  order. 

Ocl.  /. — Bo't  of  Dunliam  &  Brokaw,  on  %,  Invoice  of  Mdse.  amounting  to 
$6000,  (J.).  Sold  James  Johnson,  Freeport,  for  Cash,  1  doz. 
Fancy  Neckties,  @  $1  each  ;  12  doz.  prs.  Lisle  Thread  Stockings, 
@  $3  per  doz.  (S.  B.,  C.  B.). 

^.— Paid  shop-hands.  Cash,  |300  (C.  B.) Eeceived  Cash  for  petty- 
sales,  $119  (C.  B.). 

«?.— Received  Cash  of  J.  H.  Goldsmith,  in  full  of  %,  $900  (C.  B.)----- 
Sold  E.  R.  Felton,  on  %,  6  doz.  French  Yoke  Shirts,  @  $18  per  doz.; 
10  doz.  Knit  Undershirts,  @  $7  per  doz. ;  8  doz.  prs.  Knit  Drawers, 
@  $8  per  doz.  (S.  B.). 

^.—Received  Cash   for  petty  sales,    $120   (C.   B.) Sold   Robert 

Harmer,  Vandalia,  for  Cash,  15  Summer  Coats,  @  $2  ;  20  Summer 
Vests,  @  $1.50 ;  6  doz.  Cut-throat  Collars,  @  $2  per  doz.  (C.  B.). 

7.— Paid  Cash  for  repairing  store,  $150  (C.  B.) Received  Cash  for 

petty  sales,  $94.83  (C.  B.). 

6*.— Received  Cash  of  J.  T.  Calkins,  in  full  of  %,  $725  (C.  B.) Sold 

Jacob  Horn,  Milwaukee,  on  his  note  @  60  ds.,  50  Complete  Uni- 
forms, (cb  $20  (S.  B.)  ---  -  Received  Cash  for  petty  sales,  $110  (C.  B.). 

P.— Paid  shop-hands,  Cash,  $297  (C.  B.) Sold  J.  W.  Lusk,  on  %, 

24  Ready-made  Coats,  @  $5 ;  15  prs.  Pants,  @  $3.75 ;  30  Vests, 
@  $2 ;  1  Fine  Overcoat,  $25  (S.  B.). 
/^.—Received  Cash  for  petty  sales,  $119.50  (C.  B.). 
/^.—Received  Cash  in  full  for  P.  C.  Schuyler's  note,  $1104  (C.  B.\ 

181 


PRACTICAL  EXERCISES. 


75, — Sold  Abraham  Jackson  for  Cash,  5  doz.  Byron  Collars,  @  $2  per  doz.. 

4  doz.  D'Orsay  Cravats,  @  $12  per  doz.  (S.  B.,  C.  B.) Received 

Cash  for  petty  sales,  $157.30  (C.  B.). 

/^.— Paid  Dunham  &  Brokaw,  Cash  on  %,  $3000  (C.  B.) Paid 

shop-hands.  Cash,  $263  (C.  B.) Received  Cash  for  petty  sales, 

$85.90  (C.B.). 

/<5*. — Sold  E.  R.  Felton,  on  %,  1  case  Overalls,  6  doz.  prs.,  @  $6  per  doz.; 

2  cases  Summer  Frocks,   12  doz.,  @  $18  per  doz.   (S.  B.) 

Received  Cash  for  petty  sales,  $115  (C.  B.).  ' 

Received  Cash  of  E.  R.  Felton,  on  %,  $1500  (C.  B.) Sold 

Robert  C.  Spencer,  St.  Louis,  for  Cash,  10  Military  Coats,  @  $15  ; 

5  do.  (officers'),  @  $25  (S.  B.,  C.  B.) Received  Cash  for  petty 

sales,  $143  (C.  B.). 

Paid  Cash  for  salaries,  $117  (C.  B.) Sold  Chas.  Taylor,  on  %, 

1  piece  French  Cassimere,  50  yds.,  @  $3  (S.  B.)  -  -  -  -  -  Received  Cash 

for  petty  sales,  $125  (C.  B.) Paid  Dunham  &  Brokaw,  Cash  in 

full  of  %,  $3000  (C.B.). 

^,f .— Paid  Shop-hands,  Cash,  $375  (C.  B.) Received  Cash  for  petty 

sales,  $75  (C.  B.). 
^ J. —Sold  James  Atwater,  on  %,  12  Boys'  Frocks,  (3)  $2  ;   36  do.,  @  $5 

(S.  B.) Received  Cash  for  petty  sales,  $85.90  (C.  B.). 

^7.— Received  Cash  of  James  Atwater,  in  full  of  %,  $843  (C.  B.). 
^6*.— Paid  Cash  for  gas  bill,  $15  ;  Rent,  $100  (C.  B.). 
«?(9.— Paid  shop-hands,  Cash,  $400  (C.  B.). 

Inventory  :  Merchandise  unsold,  $3000. 


20.— \ 


27, 


STATEMENT. 

The  above  transactions,  properly  entered,  will  produce  the  following  result ; 


S.  S.  Packard  - 
J.  R.  Penn  - 
J.  C.  Bryant  - 
Bills  Receivable 
Cash  -  -  - 
Merchandise  - 
E.  R.  Felton  - 
Charles  Taylor 
J.  W.  Lusk  - 
Bills  Payable  - 
Interest  -  - 
Expense     -    - 


Face  or  Ledgbr. 


Dr. 


1750 

900 

74»J 

19272 

15750 

2745 

450 

2361 

1000 

46 

3763 


55522 


45 


75 


45 


182 


Cr. 


5000 

6750 

5900 

2604 

14109 

16183 

1876 

500 

400 

2150 

48 


75 


45 


Baxances. 


Dr. 


5162 


1961 


3763 


70 


25 


95 


Or. 


5000 
5000 
5000 


50 


1150 
2 


16635     95 


95 


APPENDIX. 


Hereik  are  given,  in  their  order,  the  transactions  which  make 
up  the  material  of  the  written  sets,  in  both  parts  of  the  book ;  as 
also  matter  for  short  practical  sets  which  may  be  profitably  used  in 
connection  with,  and  at  such  points  in  the  student's  progress 
as  the  teacher  may  think  best. 


PART     I.  — SET    I. 

JVeTi'  Torky  July  /,  /^^ 7^.— Sold  Robert  Simpson,  on  %,  10  lbs.  Rio 
Coffee,  @  12«<  ;   1  lb.  Best  Black  Tea,  $1 ;   25  lbs.  Crushed  Sugar, 

@  12^'^ Sold  James  Cruiksliank,  on  %,  1  box  Raisins,  25  lbs., 

@  20^ Sold  Horace  Webster,  on  %,  1  gal.  Vinegar,  75<^;  3  lbs. 

Black  Tea,  @  75^  ;  4  bush.  Apples,  @  $1. 

^.— Sold  W.  L.  Carpenter,  on  ^ ,  50  lbs.  Ham,  @l\f  \1  box  Herrings,  $2 
Rec'd  cash,  on  % ,  $5. 

«?.— Sold  John  Shields,  on  %,  1  brl.  Flour,  $8 Sold  Peter  Van 

Wyck,  on  % ,  5  gals.  Cider  Vinegar,  @  75!^' ;  3  bush.  Potatoes,  @  $1. 

6. — Sold  Peter  Cooper,  on  % ,  6  gals.  Molasses,  @  *^hf ;  50  lbs.  Sugar^ 
@  \2f  ;  12  lbs.  Coffee,  @  11^. 

^.— Sold  Stephen  O.  Hay  ward,  on  %,  1  brl.  Mess  Pork,  $11;  3  boxes 
Sugar,  ea.  500  lbs.,  @  6^. 

7.— Bo't  of  J.  B.  Atwood,  Bill  of  Mdse.,  as  per  Invoice,  |300 Gave 

in  payment  order  on  S.   O.   Hay  ward   for    $101  ;    Balance   on  %, 


8. — Sold  James  Sweeney,  on  %,  100  lbs.  Loaf  Sugar,  @9j^;  50  lbs.  Crushed 

Sugar,  @  8^  ;  3  lihds.  Molasses,  @  $20. 
/«9.— Sold  F.  R.  Stebbins,  on  %,  1  tierce  Rice,  1800  lbs.  @  U. 

183 


APPENDIX. 


SET    II. 

8L  Zouis,  April  f,  /^ 7.9. —Invested  Cash,  $1500 Paid  for  Sta- 
tionery, Postage   Stamps,  etc.,  $8  -  -  -  -  -  Bo't  of  Roberts,  Rhodes 

&  Co.,  N.  Y.,  on  "/cy  Mdse.  per  Invoice,  $4000 Sold  James 

Campbell,  on  %,  10  yds.  Calico,®  12j^ ;  5  yds.  Ribbon,  @  20>^;  20yds. 

Sheeting,  @  10)^ ;  5  yds.  Broadcloth,  @  $3. Received  cash  for 

sales  this  day,  per  tickets,  $115  25. 

^.— Paid  for  Insurance,  i%  on  $4000,  $20 ;  for  Drayage  on  Mdse.,  $5 
Received  for  sales  this  day,  per  tickets,  $175. 

«^.— Sold  Lauren  G.  Thomas,  on  % ,  15  yds.  Cassimere,  @  $1 ;  20  yds. 

Dress  Silk,  @  $1.25 Drew  out  for  personal  expenses,  $15 

Paid  porter  on  %  of  wages,  $5 Rec'd  cash  for  sales  this 

day,  per  tickets,  $87.23. 

4. — Sold  R.  B.  Finney,  on  %,  10  yds.  Vesting,  @  $5;   Trimmings,  etc., 

$10 Paid  expenses  cleaning  store,  $2.50  ;  Paid  for  1  box  Pens, 

88)^ Rec'd  cash  for  sales  this  day,  per  tickets,  $110.50. 

6, — Sold  David  P.  Johnson,  on  %,  6  yds.  Flannel,  @  50/- ;  12  yds.  Alpaca, 

@  $1.50 Sold  Isaac  Stevens,  on  % ,  12  yds.  Dress  Silk,  @  $1.50 ; 

6  yds.  Fine  Broadcloth,  @  $4 Paid  for  I^etter  Press,  $7.50  ; 

for  putting  light  in  window,  $2.50 Received  cash  for  sales 

this  day,  per  tickets,  $183.25. 

6, — Received  cash  on  %  of  James  Campbell,  $10 Paid  clerk's 

salary,  $15  -  -  -  -  Received  cash  for  sales  this  day,  per  tickets,  $100. 

^.— Sold  Cyrus  Wheelock,  on  %,  25  yds.  10-4  Sheeting,  @  75;^ ;  6  pairs 

Ladies'  Hose,  @  $1 ;  12  yds.  Printed  Jaconets,  (m  15^ Paid 

cash  for  1  doz.  balls  Twine,  $1.20  ;   for  Carriage  Hire,  $4 

Received  for  sales  this  day,  per  tickets,  $215. 

P.— Paid    Drayage,    $4 ;    Porterage,   $3 ;    for   Show   Case,    $20 

Received  for  sales  this  day,  per  tickets,  $76. 
/^.— Sold  Robert  Demarest,  on  %,  25  yds.  Black  Doeskin,  @  $2;  50  yds. 

Bleached  Shirting,  @  15j^ Paid  for  Safe,  $250  ;   Book-keeper 

on  %,    $10;    Small  items  of  expense,    $1.28 Received  for 

sales  this  day,  per  tickets,  $110. 

//.—Paid  rent  in  full  to  May  31,  $200  ;  on  Bill  of  Furniture,  $25 

Received  for  sales  this  day,  per  tickets,  $76.75. 

/^.—Received  from  Cyrus  Wheelock,  cash  on  %,  $15 Sold  James 

Atwater  (per  wife),  on  %,  1  doz.  Linen  Hdkfs.  $6;   10  yds.  Cotton 

Damask,  @  25^  ;  14  yds.  Black  Bombazine,  @  $1.50 Received 

for  sales  this  day,  per  tickets,  $84. 
/tf . — Received  for  sales  this  day,  per  tickets,  $98.75. 
^5* — Sold  James  Campbell  (per  daughter),  on  %,  1  pair  Lisle  Gauntlets, 
$1 ;   12  yds.  French  Calico,  @  15,<^ ;   3  doz.  Satin  Buttons,  @  25/- ; 

8  skeins  Twist,  @4,f Paid  cash  for  Express  charges,  $1.50 ; 

for  Postage  stamps,  $1 Paid  carpenter  for  repairing  store, 

$56.83 Received  for  sales  this  day,  per  tickets,  $95. 

184 


APPEKDIX. 

f6, — Sold  James  W.  Lusk,  on  ^,  1  yd.  Black  Satin,  $2  ;  Trimmings  fot 

Vest,  $1,50 Received  for  sales  this  day,  per  tickets,  $88.75. 

/7.  — Received  from  Robert  Demarest  order  on  S.  S.  Packard  to  balance  %, 

%  Received  cash  for  sales  this  day,  per  tickets,  $126.31. 

/(S".— Paid  cash  for  Drayage,  $4  ;  Freight,  $7.50 Received  for  eale^ 

this  day,  per  tickets,  $175. 
79. — Sold  James  Atwater,  on  % ,  20  yds.  Linseys,  @  50;^ ;   30  yds.  Corset 

Jeans,  @  30j^ ;  1  doz.  Gents.  Socks,  $3 Received  for  sales  this 

day,  per  tickets,  $210.50. 
^6>.— Sold  S.  S.  Packard,  10  yds.  French  Broadcloth,  @  $4  ;  50  yds.  Globe 

Drills,  @  13f ;   20  yds.  Paper  Cambrics,  @  V^f  ;    15  yds.  Cotton 

Damask,  @  25)^ ;   30  yds.  Cottonades,  @  33^ ;   6  pairs  Kid  Gloves, 

@  75^  ;   Received  cash  on  %,  $50  ;    Balance  due,  $  

Received  for  sales  this  day,  $112.81. 
^^.— Paid  cash  for  2  tons  Coal,  @  $5 ;   Paid  balance  on  Furniture,  $53 

Received  for  sales  this  day,  per  tickets,  $103.20. 

23, — Received  for  sales  this  day,  per  tickets,  $129. 

2 A, — Received  for  sales  this  day,  per  tickets,  $180.58. 

^ J.— Sold  John  J.  Howell,  Jr.,  on  «^,  10  yds.  Mixed  Satinet,  @  75)2^ ;  6  yds. 

Cotton  Drilling,  @  10^  ;  1  yd.  Fine  Satin,  $2  ;  10  skeins  Twist,  @  ^f 

Paid  Book-keeper  on  % ,  $15 Received  for  sales  this 

day,  per  tickets,  $98. 
26. — Received  for  sales  this  day,  per  tickets,  $163.75. 
27* — Sold  Amos  Dean,  on  %,  6  yds.  Black  Doeskin,  @  $2  ;   1  doz.  Linen 

Hdkfs.,  @  50^  each ;  6  pairs  Gents.  Hose,  @  25j^ Paid  cash  for 

Drayage,  $10  ;  Porterage,  $6 Received  for  sales  this  day,  per 

tickets,  $173.81. 
29. — Paid  Express  charges  on  package  from  Chicago,  $1.50  ;  Paid  Freight 

on  Mdse.,  $24.75  -  -  -  -    Received  for  sales  this  day,  per  tickets, 

$74.10. 
SO. — Received  cash  on  %   of  James  Atwater,  $20 ;    also  of  Lauren  G. 

Thomas,  in  full  of  %,  f  Received  for  sales  this  day, 

per  tickets,   $125 Sold  Isaac  Stevens,  on  %,  14  yds.  Poplin, 

@  $1.25 ;  1  pair  Kid  Gloves,  $1. 


Way  /.—Sold  James  Campbell,  on  %,  12  yds.  Brilliants,  @  35)^^;  35  yds.  Blk. 

Bombazine,  @  $1.50 Paid  cash  for  firkin  of  Butter  for  family, 

$10. 
^.— SoldR.  B.  Finney,  on  %,  10  yds.  Blk.  Doeskin,  @  $1.63;   25  yds. 

Brown  Sheetings,  @  \%f  ;    20  yds.  Check  Gingham,  @  20^ 

Paid  cash  for  Stationery,  $1.50. 
6. — Paid  Roberts,  Rhodes  &  Co.,  on  %,  cash  (per  draft  on  New  York), 

$2000. 
^.— Sold  S.  S.  Packard,  on  %,  15  yds.  Duck  Drilling,  @  20)^;   10  yd& 

Brown  do.,  @  30j^ ;  6  pairs  Pearl  Spun  Hose,  @  75)^*. 

185 


APPENDIX. 

7.-801(1  David  P.  Johnson,  on  %,  8  yds.  Broadcloth,  @  $4;   10  yds. 

Doeskin,  @  $2  ;  1  yd.  Satin,  $2 ;  Trimmings,  $5 Sold  Robert 

Demarest,  on  % ,  14  yds.  Dress  Silk,  @  $2 Paid  clerk's  Salary, 

$50 Received  for  sales  this  week,  $497.84. 

^.— Sold  Robert  C.   Spencer,  on  %,  10  yds.  Flannel,  @  50>^ ;   6  Linen 

Hdkfs.,  @  38^  ;  20  yds.  Brown  Sheeting,  @  12^. 
/^, — Received  of  Isaac  Stevens,  cash  on  %,  $30. 

/^.— Sold  R.  B.  Finney,  on  %,  6  pairs  Gents.  Hose,  @  25^ ;   1  pair  Sus- 
penders, $1 ;  1  pair  Kid  Gloves,  75^ Paid  cash  for  Invoice  of 

Mdse.,  Freight,  etc.,  $1575.88 Paid  on  %  of  rent,  $50;  for 

carriage  hire,  $15. 
/4. — Received  for  sales  this  week,  $553.25. 
/.5. — Sold  James  Campbell,  on  %,  10  yds.  Broadcloth,  @  $4 ;    6  yds. 

Doeskin,  @  $2 Received  cash  on  %  of  R.  B.  Finney,  $25. 

/7.— Paid  cash  for  ton  of  Hay,  $12. 
^t?.— Sold  John  J.  Howell,  Jr.,  on  %,  4  yds.  Beaver  Cloth,  @  $3j   1  yd. 

Satin,  $4 ;  Trimmings  for  Coat  and  Vest,  $8 Paid  Gas  Bill, 

$10.24. 
^/, — Received  of  Cyrus  Wheeler,  cash  in  full  of  %,  f  

Received  for  sales  this  week,  $723.85. 
.^^.— Received  of  R.  B.  Finney  cash  to  balance  %,  % 
26. — Paid  for  Postage  stamps,  $3  ;  for  Stationery,  $5. 
.^7.— Bo't  of  John  J.  Howell,  Jr.,  on  %,  3  cords  Wood,  @  $5 ;  50  lbs. 

Butter,  @1Q^ Sold  James  W.  Lusk,  on  %.  13  yds.  Mous.  de 

Laine,  @  25;^^ ;  14  yds.  Figured  Silk,  @  $1.50 ;  Trimmings  for  Dress, 

$10. 
^<9.— Sold  Robert  C.  Spencer,  on  %,  12  yds.  Broadcloth,  @  $4 ;  6  yds. 

Doeskin,  @  $2  -  -  -  -  -  Received  for  sales  this  week,  $573.24. 
^<?.— Sold  Amos  Dean,  on  %,  50  yds.  Brown  Sheeting,®  12^;  10  yds. 

Pressed  Flannel,  @  75;^ Received  cash  of  Amos  Dean  in  full 

of%,$ 

Inventory  ;  Merchandise  on  hand,  $1075.45. 


SET     III 


jSJban/y,  July  /,  f879.—'R.  B.  Bryant  and  H.  D.  Stratton  commence 
business  with  the  following  resources — gains  and  losses  to  be  divided 
equally.  H.  B.  Bryant  invests,  Cash,  $1300 ;  Merchandise,  as  per 
Inventory,  $4750  ;  Notes,  as  follows :  one  dated  June  7,  @  30  ds.,  for 
$500,  signed  by  Robert  Bruce,  and  endorsed  by  Henry  Ivison,  and 
one  dated  Jan.  10,  @,  8  mos.,  for  $1000,  signed  by  S.  S.  Packard,  and 
endorsed  by  Jas.  W.  Lusk  ;  Personal  Accounts,  as  follows  :  John  R. 

Penn,  $500 ;  L.  Fairbanks,  $750 ;  Alonzo  Gaston,  $375 H.  D. 

Stratton  invests.  House  and  Lot,  valued  at  $5000 ;   Cash,  deposited 
in  Union  Bank,  $3000 Paid  cash  for  Postage  stamps  and  Pens, 

186 


APPENDIX. 

$5 Sold  Robert  Van  Schaick,  for  cash,  110  yds.  Merrimack 

Prints,  @  11^  ;  75  yds.  Union  do.,  @  10^  ;  120  yds.  Orange  do.,  @  9^^  ; 
80  yds.  Lowell  do.,  @  10/-. 

2» — Received  cash,  on  %,  of  J.  R.  Penn,  $250 Paid  cash  for  print- 
ing Hand  bills,  $10. 

S, — Sold  James  Johnson,  on  %,  2  cases  Men's  Thick  Boots,  24  pr.,  @  $2; 
3  cases  Calf  Welt  Boots,  36  pr.,  @  $3  ;  1  case  Boys'  Grain  D.  S.  Boots, 
12  pr.,  @  $3 Received  cash  for  petty  sales,  $17.50. 

4. — Sold  E.  H.  Bender,  on  his  note  @  60  ds. ,  endorsed  by  J.  T.  Calkins, 

1  case  Pemberton  Remnants,  1200  yds.,  @  5^^  ;  9  pieces  Lynn  Cot- 
tons, 270  yds.,  @\\f\  3  pieces  Scotch  P.  Ginghams,  135  yds.,  @  \^f 
Paid  C.  Jones  for  repairing  store,  per  check,  $175. 

^.— Bo't  of  Claflin,  Mellen  &  Co.  (N.Y.),  on  %,  Invoice  of  Boots  and 

Shoes,  amounting  to  $575 Bo't  of  A.  T.  Stewart  &  Co.,  on  %, 

Invoice  of  Dry  Goods,  $757 Paid  Freight  on  Mdse.,  per  check, 

$27.50. 

7.— Sold  E.  B.  Rice,  on  %,  2  pieces  Eagle  Cottons,  80  yds.,  @  W -,  3 
pieces  Garibaldi  Twills,  95  yds.,  @  9j^ ;  2  pieces  Bleached  Drills,  90 

yds.,  @W;4:  pieces  Marietta  Cloth,  120  yds.,  @  12^ Received 

of  Alonzo  Gaston,  cash  in  full  of  %,  $  Paid  clerk  hire 

in  cash,  $25. 

^.— Sold  W.  H.  Clark,  for  cash,  3  pieces  Bar  Muslin,  54  yds.,  @  ISf; 

2  pieces  Brilliants,  64  yds.,  @  20)* Traveling  expenses  to  New 

York,  paid  in  cash,  $15.75. 

/O. — Sold  Benjamin  Payn,  on  %,  6  pieces  Paper  Cambric,  72  yds.,  @  S^  i 
1  piece  6-4  Cotton  Damask,  36  yds.,  @  40/^ ;  1  piece  Canvas,  25  yds., 

@  Idf Received  cash  for  Robert  Bruce's  note,  $  

Paid  A.  T  Stewart  iSc  Co.,  on  %,  $300. 

/5.— Sold  Calvin  S.  Sill  (Troy),  on  his  note  @  90  ds.,  endorsed  by  G.  V.  S. 
Quackenbush,  10  pieces  Fancy  Linens,  120  yds.,  @  25)^^ ;  20  pieces 
Crash  Linen,  200  yds.,  @  9f ;  15  pieces  English  Prints,  200  yds.,  @ 

22^  ;  36  Balmoral  Skirts,  @  $2.25 Accepted  P.  R.  Spencer's 

draft,  @  10  ds.,  on  H.  D.  Stratton,  for  $75 Received  cash  for 

petty  sales,  $33.50. 

/S, — Sold  Amos  Dean,  on  %,  3  cases  Kip  Brogans,  72  prs.,  @  $1.50 ;  2  cases 
Ladies'  Sandals,  120  prs.,  @  60/'. 

/t5. — Gave  Claflin,  Mellen  &  Co.  our  note  @  60  ds.,  to  balance  %,  f 
-  -     -  -  Paid  H.  B.  Bryant,  on  private  %,  cash,  $75. 

/6, — Received  of  Lorenzo  Fairbanks,  cash  on  %,  $350. 

/S, — Sold  George  H.  Doty  (Schenectady),  for  cash,  2  cases  Women's  Walk- 
ing Shoes,  120  prs.,  @  $1 ;  1  case  Ladies'  Morocco  Shoes,  48  prs.,  @ 
$1.50  ;  4  pes.  Check  Marseilles,  40  yds.,  @  75/ ;  10  pes.  Cambric  Cur- 
tain cloth,  120  yds.,  @  25;^. 

/9* — Paid  cash  for  advertisement  in  Evening  Journal,  $15. 

^O. — Sold  Victor  M.  Rice,  on  %,  1  doz.  Silk  Scarfs,  @  88/  each  ;  4  pieces 
English  Tweed,  36  yds.,  @  $1.12 ;  2  pieces  Spanish  Check  Prints,  80 

187 


APPEN^DIX. 

yds.,  @  W Received  on  %  of  V.  M.  Rice,  $30 Paid 

cash  for  petty  expenses,  $10. 

^/.—Received  cash  on  %  of  Amos  Dean,  $50 Paid  Bill  for  Car- 
penter work,  per  check,  $175 Paid  cash  for  Drayage,  $5  ;  for 

Postage,  $3. 

JS^, — Sold  James  R.  Morgan  (Buffalo),  on  his  note  @  60  ds.,  endorsed  by 
W.  P.  Spencer,  36  Elastic  Hoop  Skirts,  @  $2.50 ;  12  Stella  Shawls, 
@  $2  ;  6  pieces  Parametta,  300  yds.,  (^  75^. 

^S, — Sold  James  Sheldon  (Schoharie),  on  %,  3  cases  Congress  Gaiters, 
36  prs.,  @  $1.30  ;  4  cases  Jenny  Lind  Gaiters,  48  prs.,  @  $1.12  ;  2  cases 

Misses'  Sandals,  96  prs. ,  @  33^ Sold  Robert  Metcalf ,  for  cash, 

4  cases  Men's  Thick  Boots,  48  prs.,  @  $1.50  ;  3  cases  Calf  Welt  Boots, 
86  prs.,  @  $2  ;  1  case  Patent  Leather  Boots,  12  prs.,  @  $5 ;  1  case 
Misses'  School  Shoes,  60  prs, ,  @  50^. 

^4. — Sold  Charles  Heyden  (Greenbush),  for  cash,  1  piece  Black  Doeskin, 
20  yds.,  @  $1.25  ;  3  pieces  Corset  Jeans,  90  yds.,  @  10^  ;  6  pieces  De 
Laine,  180  yds.,  @  40)^ Received  of  E.  B.  Rice,  cash  in  full  of 

%,$ -. 

^tJ, — Sold  William  Shepard  (Hudson),  on  %,Q  pieces  Lancashire  Gingham, 
250  yds.,  @  lOj^  ;  1  piece  Canvas,  30  yds.,  @  12|«^ ;  1  piece  Padding, 

40  yds.,  @  W;  S  pieces  Wiggin,  60  yds.,  @  8^ Sold  Robert 

Dawes  (Pittsfield,  Mass.),  for  cash,  4  cases  Misses'  Fancy  Ties,  96  prs., 
@  70;^;  2  cases  Ankle  Boots,  48  prs.,  @  $1.25  ;  1  case  Kid  Gaiters, 

24  prs.,@  $1.50 Paid  clerk  hire  in  cash,  $25 Paid  cash 

for  acceptance  favor  of  H.  D.  Stratton,  f 

26, — Sold  John  Belden  (Utica),  on  ^ ,  2  pieces  Fancy  Cassimeres,  50  yds., 
@  $1.25  ;  3  do.  Saco  Cassiraere,  60  yds.,  @  $1 ;  9  do.  Hard  Times 
Cassimere,  270  yds.,  @  20;^ ;  2  do.  Striped  Satinet,  80  yds.,  @  50)^ 
Paid  A.  T.  Stewart  &  Co.,  cash  in  full  of  %. 

^7.— Sold  James  H.  Lansley,  for  cash,  12  Stella  Shawls,  @  $2 ;  36  Bal- 
moral Skirts,  @  $2.25 ;  24  Silk  Scarfs,  @  W.  ;  36  Gents'  Linen 
Hdkfs.,  @mf. 

29, — Sold  Wm.  H.  Fiquet  (Marion,  Ala.),  for  cash,  8  pieces  Turkey  Red 
Prints,  200  yds.,  @  16^  ;  10  pieces  English  Tweed,  90  yds.,  @  $1  ; 

2  do.  Spanish  Check,  80  yds.,  @  ^f Received  of  John  R. 

Penn,  cash  in  full  of  %,  % 

«?/. — Sold  Charles  A.  Seeley  (Rochester),  on  %,  4  cases  Misses'  Renfrew 
Boots,  96  prs.,  @  $1 ;  2  do.  Toadies'  Rarey  Boots,  24  prs.,  @  $2 ;  2  do. 

Misses'  Union  Gaiters,  48  prs.,  @  80/ Received  cash  on  above 

%,  $75. 


INVENTORY. 


Merchandise, $3000. 

Real  Estate, 5000. 

188 


APPENDIX. 


SET     IV. 

'Srooktyn,  April  /,  /6*7<9-— James  Lester  and  Robert  Brown  enter  into 
copartnership  this  day,  as  Dealers  in  Furniture  and  Cabinetware, 
under  the  firm-title  of  "Lester  &  Brown,"  Mr.  Lester  transferring 
to  the  firm  the  Assets  and  Liabilities  of  a  former  business,  and  Mr. 

Brown  investing  an  equivalent  in  cash,  as  per  terms  of  contract 

James  Lester  invests  as  follows :  Mdse.  (finished  articles),  per  I.  B., 
13000  ;  Materials  and  Unfinished  Work,  $3500 ;  Tools  and  Imple- 
ments, $300  ;  Notes  on  hand,  per  Bill-Book^$1375  ;  Balance  of  David 
Owens's  %,$230;  BaL  of  Thomas  Webster's  %,  $57.30;  Bal.  of  Tim- 
othy Pay  well's  %,  $175 The  Firm  assume  for  him  the  follow- 
ing liabilities :  Note  favor  of  Joseph  Wiggins,  due  Apr.  20,  $500 ; 
Note  favor  of  Peter  Jones,  due  Sept.  10,  $250  ;  Balance  due  Austin 

Packard  on  %,  $175  ;  Balance  due  J.  W.  Bulkley,  $230 Robert 

Brown  invests  cash,  $6482.30 Paid  cash  for  Stationery,  $5 ; 

for  Postage  stamps,  S3. 

JS. — Received  from  David  Owens  cash  in  full  of    %,   $  

Sold  A.  A.  Low,  Brooklyn,  on  % ,  1  Rosewood  Tete-a-tete,  $60 ;  1 
Gothic  Mahogany  Bedstead,  $20 ;  6  Mahogany  Chairs,  carved,  $25 ; 

1  Marble-top  Table,  $15 Sold  H.  W.  Beecher,  Brooklyn,  for 

cash,  1  Dressing  Bureau,  Serpentine  Front,  $22  ;  1  Lounge  for  Study, 

$15  ;  1  Gothic  Hall  Stand,  R.  W.,  $24 Paid  J.  Stevens  &  Co/s 

bill.  Box  Lumber,  $75 Paid  cash  for  Glue  and  Varnish,  per 

Expense  Book,  $18.75. 

«?.— Sold  H.  W.  Clark,  Williamsburg,  on  %,  Q  Cane-bottom  Chairs, 
Mahogany,  $15  ;  1  Black  Walnut  Tete-a-tete,  $25 ;  1  Mahogany 
Centre  Table,  $14  ;  1  Mahogany  Card  Table,  O.  G.  Front,  $7. 

4.— Received  from  H.  W.  Clark  cash  on  %,  $50 -  Sold  J.  J.  Powell, 

Jamaica,  on  his  note  @  30  ds.,  1  Card  Table,  Mahogany,  $8 ;  1  Sofa 
Table,  B.  W.,  $9  ;  1  Piano  Stool,  R.  W.,  $7.50  ;  2  small  Wash-stands, 

@  $2.50 Sold  Thomas  Proctor,  Yonkers,  for  cash,  1  French 

Bedstead,  B.  W.,  $15 Paid  cash  for  J.  White's  Bill  of  Hair 

Cloth,  $150. 

^.— Sold  J.  W.  Bulkley,  Williamsburg,  on  %,  1  pair  Ottomans,  B.  W., 

$10  ;  1  Lounge  Brocatelle,  $15  ;  6  Parlor  Chairs,  R.  W.,  @  $5 

Paid  cash  for  Copy  Press,  $6  ;  for  Letter  Book,  $2. 

^.— Sold  John  N.  Pattison,  New  York,  for  cash,  1  Piano  Stool,  $8  ;  1 
Music  Rack,  $4;  Paid  Workmen  wages  to  date  per  Time  Book, 
$128.17. 

7.— Sold  Richard  Bannister,  Chester,  on  %,  1  StuflPed-back  Chair,  $15; 
1  Cottage  Bedstead,  B.  W.,  $12  ;  1  Gothic  do.,  $20  ;  4  Parlor  Chairs, 
Mgy,  @  $4 ;  1  Corner  Stand,  $4 Sold  Henry  W.  Taylor,  Brook- 
lyn, for  cash,l  Double-leaf  Secretary,  $35  ;  1  Enameled  Cloth  Lounge, 

$10 Received  cash  for  John  Simpson's  note,  $500. 

189 


APPEiq^DIX. 

S.—Sold  T.  L.  Cuyler,  Brooklyn,  for  cash,  1  Extension  Dining  Table,  $14 ; 

6  Kitchen  Chairs,  @  50^  ;  1  Book  Case,  R.  W.,  $40  ;  1  Hall  Stand,  R. 

W.,  $15 Paid  Simpson's  Bill  for  B.  W.  Lumber,  in  cash,  $350. 

fO. — Sold  Robert  McGrath,  Islip,  for  cash,  2  Quartette  Tables,  Mgy,  @ 

$2.50  ;  1  Sofa  Table,  Lyre  Front,  $11 ;  1  Large  Arm  Chair,  $12  ;  2 

Sewing  Chairs,  Cane  Bottom,   @  $3.25 Paid  cash  for  Petty 

Expenses,  per  Expense  Book,  $15.30. 
/^. — Sold  James  Smith,  Hempstead,  for  cash,  12  Dining  Chairs,  @  $1.50; 

1  Dining  Table,  $15. 
/e?.— Paid  Workmen's  wages,  per  Time  Book,  $121.33. 
/J. — Received  from  Thomas  Webster  cash  in  full  of  %,  f  

Sold  Roger  Bacon,  Haverstraw,  on  % ,  1  Lady's  Arm  Chair,  R.  W., 

$10 ;  1  Lady's  Sewing  Chair,  R.  W.,  $7.50 ;  1  Card  Table,  R.  W.,  $6  ; 

1  Cabinet  Box,  R.  W.,  $20 Effected  Insurance  on  Building  and 

Contents,  paid  premium  in  cash,  $85. 
/^.— Paid  Austin  Packard  cash  in  full  of  %,  $175 Sold  Wm.  F. 

Turner,  Brooklyn,  for  cash,  1  Single  Bedstead,  $6 ;  6  Cottage  Chairs, 

@  $1.75  ;  1  Quartette  Table,  $5. 
^O. — Sold  John  Anderson,  Brooklyn,  on  %,  1  set  Enameled  Furniture, 

$65 Received  from  Richard  Bannister  cash  on  % ,  $30  -  -  -  - . 

Paid  Workmen's  Wages,  per  Time  Book,  $113.17. 
J9^,—Sold  James  E.  Jenkins,  Brooklyn,  on  his  note  @  60  ds.,  1  Sofa  Bed- 
stead, Patent,  $45  ;  6  Parlor  Chairs,  Brocatelle,  @  $5 Receiv  ed 

from  Roger  Bacon  cash  in  full  of  % ,  $  .^— . -  Paid  cash  for 

Drayage,  $10  ;  for  Postage  stamps,  $3. 
^7'. — Received  from  Richard  Bannister  his  note  @  30  ds.  to  balance  %, 

$37 Paid  Workmen's  Wages  per  Time  Book,  $121. 

^<9.— Sold  David  Woods,  Red  Hook,  for  cash,  1  Tete-a  tete,  B.  W.  and 

Broc,  $40 ;  1  Easy  Rocker,  B.  W.  and  Broc,  $25 ;  1  Corner  Stand, 

$4.50. 
SO,— Sold  H.  W.  Clark,  Williamsburg,  on  %,  1  Sofa  Bedstead,  Patent, 

$45. 

INVENTORY  TAKEN  APRIL  80. 

Value  of  Finished  Stock,        -        -        -        $4250. 

Unfinished  Stock,     -        -        -  1875. 

•*        Tools  and  Implements,    -        -  500L 


M^dy  /. — Messrs  Lester  &  Brown  have  this  day  associated  with  them  Robert 
Lincoln,  who  is  to  make  an  equal  investment  with  each  of  the  two 
former  partners,  and  share  equally  in  gains  and  losses.  The  Books 
of  Lester  &  Brown  are  therefore  made  to  exhibit  their  Resources 
and  Liabilities,  each  partner  being  credited  with  his  share  of  the  Net 
Gain,  and  the  balances  brought  down  as  a  new  investment.  The  new 
firm  is  to  be  styled  "  Lester,  Brown  &  Co." Robert  Lincoln 

190 


APPENDIX. 

invests  cash,  f  Sold  Peter  Jamieson,  Morrisania,  for 

cash,  1  "Sleepy  Hollow"  Chair,  $18;  1  Enameled  Bedstead,  $20; 

1  Enameled  Washstand,  $5 Deposited  cash  in  Central  Bank, 

$12000. 

,^.— Sold  A.  A.  Low,  Brooklyn,  on  %,  2  Gothic  Chairs,  B.  W.  Stuffed,  $30 ; 

1  set  Enameled  Furniture,  $75 Paid  Sundry  Expenses,  per 

Expense  Book,  in  cash,  $18.75. 

^.— Paid  Fisher  &  Bird's  Bill  for  Marble  m  cash,  $115 Paid  Work- 
men's Wages,  per  T.  B.,  $117.50. 

6, — Sold  Joseph  Brooks,  Bellvale,  on  % ,  2  Cupboard  Washstands,  @  $6 ; 
1  Hat  Rack,  $5  ;  1  Dining  Table,  $14  ;  1  Black  Walnut  Crib,  $5  -  -  -  -,  - 
Received  of  John  Anderson,  cash  in  full  of  % ,  $ 

^.— Sold  J.  W.  Bulkley,  Williamsburg,  on  %,  1  Centre  Table,  B.  W. 
Carved,  $25;  1  Bureau,  Serpentine  Front,  $24.50;  1  Side  "What- 
not," $4.50. 

6*.— Received  of  Timothy  Pay  well,  cash  in  full  of  %,  $ 

^?.— Paid  J.  W.  Bulkley,  cash  in  full  of  %,  $ 

^O. — Sold  Richard  Bannister,  Chester,  on  %,  1  Reclining  Chair,  patent, 

$12.50  ;  1  High  Book  Case,  B.  W.,  $40 ;  1  pair  Footstools,  $4.50. 
//.—Paid  Workmen's  Wages  per  Time  Book,  $128.75. 
76, — Sold  C.  L.  Derby,  New  York,  for  cash,  1  set  Enameled  Furniture, 

$75  ;  1  Tete-a-tete,  $30 ;  1  Rosewood  Sofa,  $60 Paid  sundry 

expenses,  per  Expense  Book,  in  cash,  $24.30. 
78. — Sold  Ivison,  Phinney  &  Co.,  New  York,  for  cash,  1  B.  W.  Library 

Book  Case,  $75 Paid  Workmen's  Wages,  per  Tim'e  Book, 

$98.50. 
^^.— Sold  W.  L.  Stimson,  Penn  Yan,  for  cash,  2  Plain  Wash-stands,  @  $2 ; 
1  French  Bedstead,  B.  W.,  $25;  1  single  do.,  B.  W.,  $10;  6  Dining 

Chairs,  @  $1.50 ;  3  Parlor  do.,  @  $4.50 Paid  L.  Johnson's 

bill  for  Plush,  etc.,  in  cash,  $124 Sold  Steamer  Isaac  Newton, 

North  River,  on  %,  6  Rosewood  Tete-a-tetes,  %  $35;  24  Rosewood 
Chairs,  @  $5 ;  3  Stuffed  Brocatelle  Arm  Chairs,  @  $25 ;  1  Carved 
Rosewood  Centre  Table,  $50. 
26, — Sold  A.  A.  Low,  Brooklyn,  on  %,  150  Orchestra  Chairs,  for  Academy 

of  Music,  %  $4 Paid  Workmen's  Wages,  per  Time  Book, 

$113.75. 
^6*.— Sold  Geo.  McDougal,  New  York,  for  cash,  1  Hall  Stand,  $4 ;  6  Parlor 

Chairs,  @  $2.75 ;  1  Wash-stand,  $10 Paid  sundry  expenses, 

per  Expense  Book,  $19.25. 
«?(9.— Sold  Abraham  Fuller,  Jamaica,  for  cash,  1  B.  W.  Sofa,  $30 ;  1  Tete- 
a-tete,  $25  ;  1  Large  Dining  Table,  $16  ;  2  Gothic  Chairs,  @  $5 

Sold  R.  Van  Norman,  New  York,  for  cash,  1  Piano  Stool,  $10 ;  1 
Music  Rack,  $5  ;  3  Arm  Chairs,  Rosewood,  @  $15. 

INVENTORY,  MAY  31. 

Finished  Stock  on  hand,  $4750;    Unfinished  Stock,   $875;    Tools  and 
Implements,  $500. 

191 


APPENDIX. 


PART    II.  — SET    I. 

JVen^  Tor  A:,  January  /^  /6*  7^.— Bought  of  Smith  &  Sons,  on  %,  1000 

brls.  Flour,  @  $6. 
^.— Sold  Robert  Bates,  for  cash,  300  brls.  Flour,  @  $6.50. 
<5.— Sold  Peter  Cooper,  on  %,  250  brls.  Flour,  @  $7. 
7. — Sold  John  Jones,  on  his  note  @  30  ds.,  150  brls.  Flour,  @  $7. 
/^.—Bought  of  J.  R.  Wheeler,  on  our  note  @  60  ds.,  500  bush.  Wheat, 

@$1. 
/5.— Sold  James  Turner,  for  cash,  100  bush.  Wheat,  @  |1.25  ;   100  brls. 

Flour,  @  $6.75. 
/4. — Paid  cash  for  Stationery  and  Books,  for  use  of  store,  $50. 
/,5.— Bought  of  Thos.  Payne,  for  cash,  300  brls.  Flour,  @  $5. 
//.—Sold  Patrick  Murphy,  for  cash,  100  brls.  Flour,  @  $6. 
/(9.— Bought  of  Geo.  Davis,  on  %,  1000  bush.  Oats,  @  75j2^. 
^<9.— Sold  Raymond  &  Co.,  on  their  note  @  5  ds.,  500  bush  Oats,  @  80<^ ; 

100  bush.  Wheat,  @  $1.15. 
^^.— Sold  Abram  Fuller,   for  cash,  400  brls.   Flour,  @  $6;    300  bush. 

Wheat,  @  $1.10. 
^^.— Bought  of  James  Hathaway,  on  %,  1500  brls.  Flour,  @  $5.50. 
^7.— Sold  Jonas  Clark,  on  %,  1000  brls.  Flour,  @  $6. 
28. — Received  cash  in  full  for  Raymond  &  Co.'s  note,  $515. 
^P.— Sold  John  Drummond,  for  cash,  500  brls.  Flour,  @  $5.75  ;  500  bush. 

Oats,  @  90^. 
,5(9.— Paid  Clerk  Hire,  in  cash,  $50  ;  Store  Rent,  $50. 


SET    I  I. 

JVew  TorJc,  I^ehriiary  /^  ^879. — Commenced  business  this  day  with 
the  following  resources  and  liabilities  taken  from  liedger  A.  {See 
Statement, page  121.)  Resources:  Cash  on  hand,  $8270  ;  Notes  on 
hand,   $1050  ;    Peter  Cooper's  account,  $1750  ;    Jonas  Clark's  do. 

$6000 Liabilities  :   Notes  outstanding,  $500  ;    Smith  &  Sons' 

account,  $6000 ;    Geo.   Davis's  do. ,  $750  ;    James   Hathaway's  do. 

$8250 Bought  of  Comstock  &  Co.,  for  cash,  10  hdds.  N.  O. 

Molasses,  600  gals.,  @  W ;  10  do.  Cuba  Sugar,  9500  lbs.,  @  ^f ; 
17  bags  Rio  Coffee,  1575  lbs.,  @  W  ;  20  half-chests  Oolong  Tea, 
1080  lbs.,  @  50,^  ;  10  tierces  Rice,  5000  lbs.,  @  4^^. 

^.— Sold  S.  S.  Randall,  on  ^,  3  gals.  Molasses,  @50;^;  200  lbs  Sugar, 
@  Qf  ;  150  lbs.  Coffee,  @  16^. 

,5.— Sold  James  W.  Lusk,  on  his  note  @  30  ds.,  2  hhds.  Sugar,  2100  lbs., 

@  6^  ;   10  half-chests  Tea,  540  lbs.,  @  55!^ Paid  cash  to  Geo. 

Davis,  in  full  of  %,  f 

192 


APPENDIX. 

^. — Sold  Henry  C.  Spencer,  on  ^,  2  hhds.  Molasses,  120  gals.,  @  45^. 

t^".— Bought  of  J.  A.  Tilford,  on  our  note  @  60  ds.,  10  tubs  Lard,  400  lbs., 
@  W;  20  boxes  Soap,  1400  lbs.,  @  7f ;   5  brls.   Pork,  1000  lbs., 

@  10^ Sold  Harmer  Smith,  for  cash,  2  brls.  Pork,  400  lbs., 

@  lO^f  ;  1  tierce  Rice,  500  lbs.,  @  5f. 

ff.— Sold  B.  F.  Carpenter,  on  %,  2  tierces  Rice,  1000  lbs.,  @  5|^  ;   1  bag 

Rio  Coffee,  150  lbs.  @  18^ Bought  of  Clarence  Doubleday,  for 

cash,  10  brls.   Potatoes,  @  $3  ;    1000  lbs.  English  Dairy  Cheese, 

@  w, 

7. — Sold  James  Reed,  for  cash,  10  lbs.  Coffee,  @  18j^ ;  3  boxes  Soap, 

210  lbs.,  @  8/'. 
S. — Bought  of  Robert  Hanaford,    for  cash,  10  hhds.   Havana  Sugar, 

11000  lbs.,  @  5/s  3  do.  N.  O.  Sugar,  3700  lbs.,  @  5^^ 
5>.— Sold  Henry  Van  Dyck,  on  %,  2  hhds.   Havana  Sugar,  1970  lbs., 

@  6^. 
/<9.— Paid  James  Hathaway,  cash  on  % ,  $4000. 
/^.— Sold  James  Hathaway,  on  %,  1  brl.  Pork,  2001bs.,@llf  ;   1  bag 

Rio  Coffee,  110  lbs.,  @  18^  ;  1  hhd.  Havana  Sugar,  900  lbs.,  @  6^. 
/e^.— Sold  L.  Fairbanks,  on  %,  100  lbs.  English  Dairy 'Cheese,  @  25;^^; 

1  brl.  Potatoes,  $1. 
/4.— Sold  Henry  Van  Dyck,  on  %,  10  lbs.  Coffee,  @  ISf  ;.  50  lbs.  English 

Dairy  Cheese,  @  25)^^ ;  50  lbs.  Rice,  @  5|)^. 
/tJ.— Paid  cash  for  Rent  of  Store,  $100 Sold  J.  T.  Calkins,  for  cash, 

150  lbs.  English  Dairy  Cheese,  (^  25/^. 
/7-  — Received  cash  of  Henry  C.  Spencer,  in  full  of  % ,  f 
/6'.— Sold  S.  S.  RandaU,  on  %,  25  lbs.  Tea,  @  5Q^ ;   50  lbs.  Lard,  @  W  j 

20  lbs.  Rice,  @  5f. 
JSO.— Sold  Peter  Cooper,  on  «^,  2  brls.  Pork,  400  lbs.,  @  llj^. 
^^.— Sold  E.  F.  Hill,  on  %,  1  half-chest  Tea,  54  lbs.,  @  60^. 
<^,?.— Received  of  Jonas  Clark,  in  full  of  %,  cash,  $3000  ;  Note  @  90  ds.. 


^J".— Paid  Smith  &  Sons,  cash  on  %,  $3000 Sold  Geo.  Davis,  on  %, 

2  hhds.  N.  O.  Molasses,  120  gals. ,  @  44|/. 
.^^.— Paid  cash  for  our  note,  favor  of  J.   R.  Wheeler,  $500 Sold 

E.  C.  Bradford,  for  cash,  10  lbs.  Rio  Coffee,  @  W ;   10  lbs.  Tea, 

@  50/ ;  50  lbs.  Rice,  @  7^.  < 

^T'-^Sold  Edwin  Morgan,  for  cash,  1  tierce  Rice,  500  lbs.,  @  Qj^  ;  2  brls. 

Potatoes,  @  $3. 
^6'.— Paid  Clerk's  Salary  in  cash,  $100. 

Inventory  :  Merchandise  unsold,  $2500. 

[Set  III  SAME  AS  in  Part  I.] 


193 


APPEin)IX. 


SET    IV. 

Chicago,  September  f,  /879.—^,  S.  Packard,  John  R.  Penn,  and  J.  C, 
Bryant  are  partners.  S.  S.  Packard  invests,  Cash,  $5000  -  - .  -  - 
J.  R.  Penn  invests  Merchandise,  amounting  as  per  Inventory  to 
$6750.     The  firm  assumes  for  him  two  notes — one  favor  of  J,  Mat- 

tox  for  $750 ;  and  one  favor  of  Henry  Brown  for  $1000 J.  C. 

Bryant  invests  :  J.  Smith's  note  for  $750  ;  H.  Young's  do.  for  $750 
and  personal  accounts  as  follows :  J.  T,  Calkins,  $500  ;  E.  R.  Felton, 
$376  ;  J.  H.  Goldsmith,  $1170  ;  Jas.  Atwater,  $1250 ;  P.  C.  Schuyler, 
$1104.     The  firm  assumes  for  him  personal  accounts,  viz. :   Chas. 

Taylor,  $500 ;  J.  W.  Lusk,  $400 Paid  cash  for  Postage  stamps, 

$3 Sold   Theron  W.  Woolson,   Mt.   Pleasant,    la.,    for  cash, 

4  doz.  Shirts,  3d  quality,  48,  @  $1  ;  6  doz.  Union  Neckties,  72, 
@  38)^ ;  20  doz.  Linen  Hdkfs.,  240,  @  50^  ;  3  pes.  Cassimere,  150  yds., 

@  $1.33  ;   Disc,  off,  5  % Sold  Ira  Packard,  Peru,  Ind.,  on  his 

note  @  6  mos.,  50  Boys'  Overcoats,  @  $5.50;   50  do.,  @  $7.50 

Received  cash  for  petty  sales,  per  P.  C.  B.,  $54.25. 

^.—Received  of  J.  T.  Calkins,  cash  on  %,  $200 Paid  Chas.  Taylor, 

cash  on "%,  $300. 

,?.— Sold  D.  V.  Bell,  City,  for  cash,  1  Dress  suit  for  self,  $50  ;  1  Overcoat 

for  son,  $15 ;    1  box  Hdkfs.,  6  doz.,  @  $4 -  Received  cash  for 

petty  sales,  per  P.  C.  B.,  $28.90. 

^, — Paid  cash  for  2  tons  Coal,  @  $5. 

6. — Received  cash  for  petty  sales,  per  P.  C.  B.,  $105 Sold  J.  H. 

Goldsmith,   Detroit,   2  pes.    English  Broadcloth,    100  yds.,  @   $4; 

50  Military  Coats,  per  order,  @  $10 Received  cash  for  petty 

sales,  per  P.  C.  B.,  $105. 

6, — Paid  cash  for  bill  of  Stationery,  $15  ;   Paid  hands,  for  shop  work, 
$150. 

7. — Sold  James  Allen,  Dubuque,  for  cash,  20  Zouave  Uniforms,  @  $25  ; 

1  piece  Striped  Satin,  50  yds.,  @  $5  ;  Disc,  off  Satin,  5% Paid 

cash  for  Invoice  Cloths,  per  I.  B.,  $3000. 

/O, — Received  cash  of  Jas.  Atwater,  on  %,  $750 Paid  cash  for  Gas 

bill,  $15. 
/^. — Sold  Jas.  Atwater,  Madison,  on  %,  1  lot  ready-made  clothing,  viz. : 
10  Coats,  (S  $3  ;  20  do.,  @  $3.50  ;  50  do.,  @  $5  :  8  prs.  Pants,  @  $3  ; 
25  do.,  @  $4;   50  Vests,  @  $1.50;   25  do.,  @$3;    1  Overcoat,  $15 

Received  cash  for  petty  sales,  per  P.  C.  B.,  $58. ' 

fS.  —Paid  hands,  for  shop  work,  cash,  $175. 

/4. — Received  cash  for  petty  sales,  per  P.  C.  B.,  $138. 

/J.— Gave  Jas.  W.  Lusk  our  note  @  30  ds.  to  bal.   %,  $  

Sold  Wm.  Baker,  Springfield,  for  cash,  5  doz.  Cravats,  60,  @  75^  ; 
3  doz.  do.,  36,  @  $1 ;  9  doz.  Linen  Hdkfs.,  108,  @  50^ ;  Disc,  off,  5% 
Sold  J.  T.  Calkins,  North  Bend,  Ind.,  on  %,  50  Military  Coats 

194 


APPENDIX. 

(privates),  @  $10 ;   5  do.  (officers),  @  $15 Paid  cash  for  our 

note  favor  H.  B.,  and  interest.   Face  of  note,  $1000.  Interest  to  date, 

$46.75. 
/^.—Received  cash  on  %  of  J.  T.  Calkins,  $150. 
/T'. — Received  cash  for  J.  Smith's  note,  and  interest  to  date.     Face  of 

note,  $750.     Interest,  $34.25. 
/8. — Sold  C.  D.  Bragdon,  Rock  Island,  on  his   note  @  6  mos.,  50  Coats 

(ready-made),  @  $5  ;  100  prs.  Pants,  @  $3  ;  50  doz.  Collars,  @  $1.50; 

5  doz.  F.  Y.  Shirts,  60,  @  $1.75 Received  cash  for  petty  sales, 

per  P.  C.  B.,  $94.83 Paid  Clerk's  Salaries  in  cash,  $112. 

^^.— Received  of  P.  C.  Schuyler,  his  note  @  60  ds.  to  bal.  %,$ 

Sold  Geo.  E.  Harvey,  Green  Bay,  on  his  note  @  60  ds.,  100 

Zouave  Uniforms,  @  $20  ;  50  Military  Coats,  "  Co.  H,"  @  $10 

Paid  cash  to  hands,  for  shop  work,  $250. 
2J3. — Received  cash  on  %  of  J.  H.  Goldsmith,  $1000  ;  for  petty  sales,  per 

P.  C.  B.,  $112.44. 
^J.— Sold  Jas.  W.  Lusk,  City,  50  Uniforms  ("Lincoln  Green"),  @  $25; 

30  do.  (Zouaves),  @  $15 Received  of  E.  R.  Felton,  cash  in  full 

of  %,  $ Received  for  petty  sales,  per  P.  C.  B.,  $83.75 

, Paid  Rent  to  Sept.  30,  in  cash,  $100. 

^(?.— Received  of  J.  H.  Goldsmith,  cash  on  %,  $170 Received  for 

petty  sales,  per  P.  C.  B.,  $58.94 Paid  cash  for  Porterage  and 

Drayage,  $35. 
^7. — Received  of  Jas.  Atwater  on  %,  cash,  $500 Received  for  petty 

sales,  per  P.  C.  B.,  $117.50. 
^c^.— Sold  Robert  McGrath,  White  Pigeon,  20  Boys'  Coats  (ready-made), 

@  $5  ;  30  Vests  (ready-made),  @  $1.50  ;  20  doz.  Collars,  @  $1 ;  Disc. 

off,  5% Received  cash  for  petty  sales,  per  P.  C.  B.,  $87.50 

Paid  cash  to  hands,  for  shop  work,  $275. 

^9, — Received  cash  in  full  for  H.  Young's  note.    Face  of  note,  $750. 

Interest  accrued  to  date,  $14.50 Received  cash  for  petty  sales, 

per  P.  C.  B.,  $112.94. 
,?(9.— Sold  E.  R.  Felton,  Peoria,  on  %,  75  complete  Uniforms,  @  $25 

Received  cash  for  petty  sales,  per  P.  C.  B.,  $175 Partners' 

salaries  for  month,  paid  in  cash,  $606. 

[For  a  continuation  of  this  business,  see  pa^e  181  (Fourth  Series).] 


195 


APPE2JDIX. 

MATERIAL    FOR    SHORT    SETS. 

EITHER  IN  SINGLE  OR   DOUBLE   ENTRY. 

The  material  f  urnislied  herewith  is  intended  to  supplement  the  regular 
sets  of  the  main  work — or  to  supplant  such  of  them  as  may  be  deemed  best. 
The  transactions  will  be  found  specially  useful  for  drill  exercises,  or  exam- 
ination tests.  ^ 

Supplementary  Set  1. 

Carting  Business.— Single  Proprietorship. 

/Vefi^  York,  July  /,  /SSO.—Beg&n  business  with  a  cash  capital  of  $5000 

Bought  for  cash  4  horses,  carts,  and  equipments^  $800 

Paid  cash  for  reut  of  stable,  one  month,  $35. 
July  8, — Received  cash  for  cartage  during  the  week,  $75 Work  done 

on  %,  viz.:  For  W.  A.  Miller,  $10 ;  J.  L.  Hunt,  $15  ;  Thos.  Hunter, 

$12 Paid  workmen's  wages,  $35.75. 

July  /6, — Paid  cash  for  horse-shoeing,  $7 ;  For  repairing  carts  and  harness 

$3.75 Received  cash  for  carting  during  the  week,  $83.75 . 

Work  done  on  %,  viz. :   Thos.  Hunter,  $10  ;  William  Taylor,  $17  j 

J.  L.  Hunt,  $3  ;  C.  E.  Cady,  $5.75 Paid  workmen,  $29.50. 

July  22. — Received  cash  for  dray  age  during  the  week,  $85 Work 

done  on  %,  viz.:  Thos.  Hunter,  $15  ;  W.  A.  Miller,  $17.50 ;  C.  Clag- 

horn,   $18 Received  cash,  viz.:(W.   A.  Miller,  on   %,  $18: 

Thos.  Hunter,  on  %,  $27  ;  J.  L.  Hunt,  in  full,  $  :    ^  ^   ; 

Horses,  carts,  and  jequipments,  valued  at  cost. 
Required  the  condition  of  the  business,  dnd  the  net  gain  or  loss. 

Supplementary  Set  2. 
Dry  Goods  Business.— Single  Proprietor. 

Albany,   Sept,  /,  7879, — Began  business  with  a  cash  capital  of  $1000 

Paid  for  repairing  store,  $75 Bought  goods  of  G.  A. 

Crocker,  New  York,  on  % ,  amounting,  per  invoice,  to  $2517. 

Sept,  ^.— Sold  Merchandise,  viz. :  To  C  S.  Sill,  Troy,  on  %,  for  $175  ;  To' 
McCook,  for  cash,  $210.30  ;   To  E.  G.  Folsom,  on  his  note  at  30  ds., 
$412.75. 

Sept.  72. — Paid  one  month's  rent  of  store,  in  cash,  $100 Paid  em- 
ployes, for  services,  $50 Sold  merchandise  to  Joseph  Brower, 

on  %,  $317.25 (Received  from  C.  S.  Sill,  Troy,  goods,  not  as 

ordered,  for  which  we  credit  him  $25.) 

Sept,  «? 6?. -^Settled  with  Joseph  Brower  for  his  indebtedness — ^accepting  a 
compromise  of  75%  :  Cash  received,  in  full  of  %,  $237.94;  Lost  the 

balance,  $  . . . .  -  Paid  cash  for  petty  expenses,  $17.50  4 

Paid  G.  A.  Crocker,  cash  on  %,  $500 Sold  merchandise,  for 

cash,  $375. 

Merchandise  on  hand,  $1584.72. 

Required  a  full  statement  of  the  business,  as  to  property,  condition,  etc. 

196 


J  3    .r^ 

APPENDIX. 

Supplementary  Set  3. 
Business  of  a  Teacher.— Single  Proprietorship. 

^hitadetphla,   Oct,  /,  /879. — Began  business  with  a  cash  capital  of 

$1500 Paid  cash  for  furniture  and   implements,   $750 ;    For 

olfice-books  and  stationery,  $50  ;  For  5  tons  of  coal,  $25. 

October  ^<9.— Received  cash  for  tuition,  $1500 Paid  janitor,  $30. 

October  SO. — Paid  cash  for  teachers'  salaries,  $120. 

jYove77iber  /O.—P&id  cash  for  2  months'  rent,  $300  ;  For  repairs,  $30 

Paid  teachers'  salaries,  $90 Paid  janitor,  $30. 

S)ecember  SO, — The  following  amounts  are  due  for  tuition,  etc. ;  From 
W.  J.  Carter,  $53.75 ;   From  W.  L.  Hill,  $73  ;   From  S.  G.  Howe, 

$89.50  ;  From  Rednor  Wood,  $115.30 The  following  balances 

are  due  teachers :   To  Sallie  L.  Cook,  $25  ;   To  Alice  P.  Luick,  $57  ; 

To  Geo.  S.  Bigelow,  $100 Paid  janitor's  wages,  $30 Paid 

for  two  months'  rent,  $300. 


Estimated  value  of  furniture  and  implements,  $750 Unexpired  rent,  $150. 


Required  a  full  statement  of  current  and  standing  condition. 


Supplementary  Set  4. — Continuation  of  Set  3. 
Business  of  Teaching.— Copartnership. 

[The  business  represented  in  the  previous  set  is  continued,  under  a  copartnership,  the 
hew  proprietor  Investing  in  cash  an  amount  equal  to  the  net  capital  shown  at  the  close  of  the 
previous  month.  The  partners  in  the  new  firm  are,  the  previous  proprietor  (supposed  lo  be 
the  student,  who  will  fill  the  blank  with  his  own  name)  and  Thos.  M.  Pierce,  under  the  title 
of &  Pierce.] 

^Philadelphia,  January  f,  /c9(96>.— Thos.  M.  Pierce  invests  cnsh, 
$  Paid  Sallie  L.  Cook,  balance  of  salary  due,  f 

*ra?iua?y  4^, — Received  cash  of  Rednor  Wood,  in  full  of  %,  %  

Received  cash  for  tuition,  $18-175 Paid  janitor,  $15. 

Jaiiuary   f6. — Received  cash  for  tuition,  $517 Deposited  cash  in 

Union  Bank,  $3500 Paid  cash  :  To  Geo.  S.  Bigelow,  on  %,  $r>0. 

JTannary  20. — Rec'd  cash  for  tuition,  $325 Paid  janitor's  wages,  $35. 

JFeb,  6, — Paid  for  repairs,  $15.75 Received  cash   for  tuition,  $175 

Paid  balances  due  teachers  :  G.  S.  B..  $50  ;  A.  P.  L.,  $57. 

Jl^arch  to. — Rec'd  cash  for  tuition,  $225 Paid  for  office  stationery,  $15. 

Ji€a7'c?i  SO. — Received  cash  for  tuition,  $1525 Paid   rent  in  full    to 

date,  $300 Quarterly  tuition  bills  unpaid,  viz.:   S.  G.  Howe, 

$175  ;  W.  J.  Carter,  $75  ;  W.  L.  Hill,  $100  ;  G.  W.  Brown,  $117. 

Jifarch  S/. — Paid  teachers'  salaries,  in  full,  $575. 


Value  of  furniture  and  fixtures,  $700. 


Bequired  the  interest  of  each  partner  at  the  dose  of  business. 

197 


APPENDIX. 


PRACTICAL     HINTS. 

In  the  preparation  of  this  book  the  author  has  kept  in  view  the  fact  that 
in  order  to  become  a  good  accountant,  the  student  should  learn  not  only  to 
think  for  himself,  but  to  give  his  thoughts  proper  expression  ;  hence  the 
introduction  of  "Exercises"  and  "Examples,"  intended  to  throw  him  upon 
his  own  resources,  and  remedy  the  evils  which  attend  the  practice  of  copy- 
ing. This  feature  must  commend  itself  to  the  faithful  teacher  who  is  satis- 
fied with  no  progress  which  is  not  real.  The  three  qualities  essential  to  suc- 
cess in  Accountantship  are,  1.  Accuracy;  2.  Neatness;  3.  Dispatch;  and 
these  can  be  acquired  only  through  ^;?Yrc^ice.  Instead,  therefore,  of  omitting 
any  of  the  practical  Exercises,  or  passing  lightly  ov^er  them,  they  should  be 
regarded  as  indispensable,  and  even  additional  exercises  should  be  given  by 
the  teacher  or  self-imposed  by  the  student.  The  limited  space  renders  it 
impossible  to  carry  out  in  detail,  all  the  labor  which  actual  business  would 
require  in  the  way  of  filling  out  notes,  draft?,  checks,  etc.,  or  to  suggest 
appropriate  forms  for  such  letters  and  documents  as  would  be  necessary  in 
conducting  the  business  represented ;  but  the  student  should  be  required  to 
supply  this  deficiency,  with  such  aid  as  the  teacher  may  offer. 

The  following  hints  are  submitted  as  appropriate. 

ORDER  AND  NEATNESS. 

There  is  no  error  more  common  than  that  a  theoretical  knowledge  of 
general  principles  will  prepare  a  person  for  the  duties  of  the  Counting  Room. 
It  is  true  that  without  this  knowledge,  one  need  never  hope  to  succeed ;  and 
equally  true  that  with  no  other  knowledge  the  way  will  be  very  difficult. 
Although  in  enumerating  the  qualifications  of  an  Accountant  we  have  placed 
NEATNESS  secoiid  in  the  list,  it  is  the  first  which  attracts  attention,  and  is  of 
the  utmost  importance  in  the  practical  work  of  accountantship.  Neatness  in 
book-keeping  is  the  result  of  good  writing  and  tasteful  arrangement.  It  is  a 
mistaken  idea  that  the  ability  to  form  a  few  wondrous  curves  in  the  execu- 
tion of  capital  letters  or  the  adornment  of  a  fancy  title,  constitutes  the  chief 
qualification  of  a  business  writer.  Practical  men  do  not  usually  appreciate 
such  qualifications,  but  insist,  rather,  on  the  utmost  modesty  of  display  and 
simplicity  of  arrangement.  A  professional  flourish  is  as  much  out  of  place 
on  a  page  of  business  record,  as  a  daub  of  paint  on  a  marble  statue.  Uni- 
formity, legibility,  and  adaptation  to  space  and  purpose  should  be  the  charac- 
teristics of  business  writing  ;  and  he  who  fails  in  these  will  need  something 
more  than  a  certificate  from  a  professor  of  pen  art  to  save  him.  These  remarks 
are  not  in  disparagement  of  any  style  or  system  of  penmanship,  nor  designed 
to  underrate  the  very  useful  profession  which  makes  good  writers ;  but  to 

198 


APPEKDIX. 

place  the  practical  above  tlie  fanciful ;  and  to  insist  upon  a  proper  recogni- 
tion of  the  standard  of  taste  which  business  men  have  adopted.  Rapidity  of 
execution  is  an  essential  element  in  business  writing,  but  even  this  should  be 
subordinated  to  neatness.  In  the  selection  of  script  for  the  principal  forms 
in  Part  I.  reference  has  been  had  to  the  standard  of  neatness  above  indicated; 
it  is  not  expected  that  the  student  will  attempt  to  copy  the  style  of  the  writing, 
but  it  is  hoped  that  he  may  seek  to  emulate  its  legibility  and  taste  in  arrange- 
ment. Particularly  should  he  seek  to  avoid  errors  which  require  erasures. 
Nothing  so  destroys  the  beauty  of  a  page  as  erasures  and  interlineations. 
Even  occasional  blotting  is  preferable  to  occasional  scratching.  Where  it  is 
possible,  errors  should  be  corrected  by  counter  entries,  thus  aflPording  an 
explanation,  without  destroying  the  harmony  of  the  page.  Finally,  let  the 
student  practice  until  he  becomes  proficient  in  ruling.  In  using  red  ink  care 
should  be  had  to  keep  it  pure ;  and  to  that  end,  never  use  a  pen  that  has 
been  dipped  in  black.  Even  steel  pens  are  thought  to  destroy  the  brilliancy 
of  red  ink,  and  quills  are  preferred  on  that  account.  A  steel  pen,  however, 
is  the  best  for  ruling,  and  needs  only  to  be  kept  perfectly  clean. 

PROFICIENCY  IN  MATHEMATICS. 

The  processes  of  book-keeping  seldom  call  into  practice  the  higher  depart- 
ments of  mathematics  ;  albeit  a  thorough  mathematician — other  things  being 
equal — will  make  the  best  accountant.  The  kind  of  proficiency  most  avail- 
able to  a  book-keeper  is  facility  and  accuracy  in  addition.  The  ability  to  add 
long  columns  of  figures  with  speed  and  certainty  is  one  of  the  very  best  claims 
a  young  man  can  present  for  a  position  of  trust.  So  highly  is  this  accom- 
plishment esteemed  by  business  men,  that  where  it  is  wanting  other  qualifi- 
cations sink  into  comparative  insignificance.  A  clerk  who  "  never  makes  a 
mistake"  is  sure  of  promotion  and  remuneration.  There  are  many  theories 
as  to  the  surest  and  most  rapid  method  of  adding,  and  occasionally  some 
eccentric  genius  electrifies  the  world  with  an  exhibition  of  almost  magical 
power  in  this  direction ;  but  the  only  thing  that  can  with  safety  be  relied 
upon  is  practice — faithful  and  continued  practice.  The  student  should  be 
required  to  write  down  long  columns  of  figures  of  various  numerical  values, 
and  test  his  powers  by  adding,  first  in  one  direction  and  then  in  the  other ; 
occasionally  trying  two  and  three  columns  at  a  time.  We  give  on  the  next 
page  three  simple  processes  of  retaining  the  figure  to  be  carried — a  very 
important  matter  with  beginners.  The  first  is  the  usual  method  of  writing 
the  carrying  figure  small  under  the  unit  amount  of  the  column  which  pro- 
duced it.  The  second  requires  the  addition  of  each  separate  column  to  be 
written  down  on  a  waste  space  commencing  with  the  right  hand  column 
and  carrying  to  the  next  as  in  the  usual  method ;  these  separate  amounts 
placed  in  their  order,  one  under  the  other,  will  present  in  their  unit  figures, 
counting  upward,  the  general  result.  The  third  method  consists  of  the 
proper  arrangement  of  the  independent  sum  of  each  column,  so  that,  beim* 
added,  the  proper  result  is  secured. 

199 


Mrst  Process. 

1829  25 

743  18 

2562  28 

145  19 

2823  25 

7574  28 

4291  83 

25  64 

19994  90 

333     SS 

APPETSTDIX. 

Examples 

Second  Process. 

TMrd  Process. 

1st  column,  50 

5  0 

2d        "        29 

2     4  : 

3d        "        34 

3  3     :  : 

4th       **        39 

3  6:      :  : 

5th       "        39 

3  6::      ;  : 

6th       **        19  994  90 

16:::      :  : 

19  9  9  4      9  0 

The  process  of  adding  two  or  more  columns  at  once  is  much  more  simple 
than  is  generally  supposed ;  requiring  little,  if  any,  more  skill  than  the  com- 
mon method.  The  only  point  of  difficulty  is  the  necessity  of  adding  units  to 
units,  tens  to  tens,  etc.  To  give  the  student  an  idea  of  the  process,  we  will 
take  the  two  cent-columns  in  the  above  example,  and  add  them  together. 
Commencing  with  the  lower  amount,  we  proceed :  64  and  3  are  67,  and  80 
are  147,  and  8  are  155,  and  20  are  175,  and  5  are  180,  and  20  are  200,  and  9 
are  209,  and  10  are  219,  and  8  are  227,  and  20  are  247,  and  8  are  255,  and  10 
are  265,  and  5  are  270,  and  20  are  290 ;  which  is  the  sum  of  the  two  columns. 
It  will  be  seen  that  we  separate  each  amount  into  units  and  tens,  adding  the 
units  to  the  units  and  the  tens  to  the  tens  of  the  accumulating  result.  We 
will  now  vary  the  process  by  commencing  at  the  top  and  adding  downward ; 
and  also  by  adding  the  tens  first :  25  and  10  are  35,  and  8  are  43,  and  20  are 
63,  and  8  are  71,  and  10  are  81,  and  9  are  90,  and  20  are  110,  and  5  are  115, 
and  20  are  135,  and  8  are  143,  and  80  are  223,  and  3  are  226,  and  60  are  286, 
and  4  are  290  ;  the  game  result  as  before.  By  continued  practice  of  this  kind 
the  student  will  soon  astonish  himself  with  his  own  proficiency.  Let  him 
practice  on  two  columns,  until  he  becomes  thoroughly  familiar  with  the 
process,  and  then  take  three,  and  four.  The  necessity  of  keeping  his  mind 
constantly  on  the  alert  for  fear  of  adding  tens  to  units,  and  units  to  hundreds, 
will  serve  to  quicken  his  powers  of  concentration,  and  develop  the  practical 
resources  of  his  mind. 


TO  DETECT  ERRORS  IN  THE  TRIAL  BALANCE. 

Undoubtedly  the  best  method  for  guarding  against  the  trouble  of  finding 
errors  in  the  Trial  Balance  is  not  to  make  them ;  but  as  this  advice  is  much 
more  easily  given  than  followed,  and  as,  in  despite  of  the  best  efforts,  Trial 
Balances  do  frequently  fail  to  balance,  a  few  hints  as  to  the  best  methods  of 
discovering  the  errors  may  be  kindly  received.  In  the  first  place  let  it  be 
remembered  that  while  the  Trial  Balance  is  not  a  sure  test  of  the  correctness 
of  the  Ledger,  no  Double  Entry  Ledger  can  he  correct  that  does  not  balance  ; 
hence,  the  necessity  of  knowing  that  the  sides  are  equal.  The  Trial  Balance 
is  simply  the  summing  up  of  the  debit  and  credit  sides  of  the  Ledger  to 

200 


APPENDIX. 

ascertain  if  thej  are  equal.  If  the  trial  should  prove  tnat  they  are  iwt  equal, 
the  cause  must  exist  either  in  entries  being  omitted,  posted  to  the  wrong 
side,  or  in  wrong  amounts.  A  little  observation  will  enable  the  accountant 
to  classify  the  error  under  one  of  tlie  above  heads.  If  the  precaution  indi- 
cated in  our  first  Double  Entry  sets  be  taken,  viz. :  to  carry  the  total  amounts 
posted  into  the  Trial  Balance — and  either  side  agrees  with  the  footing  of  the 
Journal  columns,  the  difficulty  is  easily  overcome,  as  the  difference  between 
the  sides  will  show  not  only  the  error  or  combination  of  errors,  but  the  side 
of  the  Ledger  upon  which  they  occur.  For  various  reasons,  however,  it  is 
not  always  convenient  to  embrace  the  total  Ledger  entries  in  the  Trial 
Balance  ;  therefore  for  general  purposes,  we  would  suggest  the  following 
process  for  detecting  errors:  First,  make  sure  that  an  error  exists.  It  is 
often  the  case  that  an  overweening  anxiety  to  have  the  sides  of  the  Trial 
Balance  equal  actually  produces  a  supposed  error,  by  dissipating  the  mind 
while  engaged  in  ascertaining  the  result,  and  thus  persistently,  though 
erroneously  realizing  its  own  fears,  by  errors  in  addition.  If  an  error  seems 
to  exist,  before  attempting  to  find  it  go  carefully  over  the  work  of  addition, 
proving  it  in  every  way.  If  the  test  should  prove  that  the  sides  do  not  equal, 
refer  to  the  Ledger  accounts,  and  ascertain  that  the  proper  amounts  have 
been  transferred  to  the  Trial  Balance.  Foot  up  the  accounts  very  carefully, 
and  permit  no  doubt  to  exist  that  the  exact  condition  of  the  Ledger  is  shown 
in  the  Trial  Balance. — Second,  If  the  error  still  exists,  ascertain  its  exact 
amount,  and  then  look  carefully  for  the  same  amount  in  the  Journal,  which 
may  have  been  omitted  in  posting.  If  no  such  an  amount  should  appear,  or 
should  not  prove  to  have  been  omitted,  next  ascertain  if  any  Journal  Entry 
exists  of  Jialf  the  amount,  which  being  posted  to  the  icrong  side  would  produce 
the  difference.  Should  this  test  prove  unsuccessful,  ascertain  if  the  difference 
be  divisible  by  9,  and  if  so,  look  carefully  for  a  transposition  of  some  amount 
posted.* — Third,  Should  this  process  fail,  the  last  resort  is  to  clieck  the  post- 
ings. First  ascertain  that  the  Journal  entries  balance  and  then  go  carefully 
over  the  work,  checking  in  pencil  mark,  all  entries  that  have  been  properly 
posted  both  on  the  Journal  and  the  Ledger.  The  most  reliable  process  of 
checking  is  to  have  one  person  take  the  Journal  and  call  off  the  Ledger  titles 
and  amounts,  slowly  and  distinctly — the  debits  first,  and  credits  next — while 
another  examines  the  Ledger  entries  to  see  if  they  correspond.  Many  prac- 
tical accountants  adopt  the  plan  of  thus  checking  before  attempting  to  take 
a  Trial  Balance,  for  the  purpose,  not  only  of  facilitating  the  labor  but  of 
feeing  assured  that  the  Ledger  is  absolutely  correct.  We  cordially  commend 
the  practice,  believing  that  if  it  is  adopted,  and  faithfully  carried  out,  there 
will  be  little  need  of  resorting  to  any  other  method  to  ensure  a  balance. 
Above  all,  let  the  student  hunt  up  his  ovm  errors  of  balance ;   for  while  it  is 


*  It  is  a  curious  fact  that  the  difference  between  any  given  amount  composed  of  two  or 
more  figures,  and  the  same  figures  transposed,  is  divisible  by  9.  For  example,  the  difference 
between  75  and  57  is  18;  between  120  and  210,  90;  between  195  and  159,  36,  etc.,  all  of  which 
differences  18,  90,  and  33,  are  divisible  by  nine,  without  a  remainder.  The  illustration  may 
be  carried  to  any  extent,  with  the  same  results. 

201 


APPENDIX. 

true  that  all  such,  errors  are  the  result  of  carelessness,  the  adoption  of  means 
to  detect  them,  will  tend,  in  the  greatest  degree  to  perfect  his  mind  in  those 
practical  questions  and  labor  necessary  to  the  full  development  of  his  powers. 
It  is  the  duty  of  the  teacher  to  open  up  to  the  pupil's  mind  the  bearings  of 
the  various  principles  of  the  science  he  would  inculcate,  as  well  as  to  aid 
him  in  the  application  of  those  principles  ;  but  practical  results  should  be  the 
student's  own  work.  For  these  he  should  be  held  responsible ;  and  should 
never  be  allowed  to  fall  into  the  loose  habit  of  making  errors  that  his  teacher 
aiay  find  them. 

RESOURCES  AND  LIABILITIES. 

The  student  has  been  taught  that  certain  Ledger  accounts  are  used  to 
show  resources,  and  certain  others  to  show  liabilities,  and  that  the  corres- 
pondence between  the  resources  and  liabilities  thus  shown  must  agree,  in  a 
certain  sense,  with  the  accounts  showing  gains  and  losses.  He  must  be 
aware,  however,  that  all  resources  are  not  equally  valuable  ;  that,  in  the 
course  of  trade,  persons  may  become  indebted  to  us,  both  on  note  and  on 
account,  who  will  never  pay  ;  the  resource  thus  represented  being  absolutely 
valueless.  In  estimating  the  condition  of  a  concern,  therefore,  it  is  well  to 
know  whether  the  books  are  truthful ;  that  is,  whether  the  resources  ex- 
hibited on  their  pages  are  absolute  or  fictitious.  The  importance  of  this 
precaution  will  be  apparent  when  we  consider  that  all  gains  in  business,  as 
shown  by  business  accounts,  are  predicated  upon  the  integrity  of  the  re- 
sources. For  instance,  suppose  we  sell  A.  $500  worth  of  merchandise,  and 
take  his  note  for  it.  In  recording  the  transaction,  we  credit  Merchandise 
and  debit  Bills  Receivable.  In  estimating  our  gains  and  losses,  we,  of 
course,  include  among  the  proceeds  of  merchandise  this  amount,  which 
adds  $500  to  our  gains.  But  suppose  the  note  to  be  worthless.  In  this 
case  Merchandise  account  is  made  to  show  a  gain  which  does  not  exist. 
The  error  may  be  corrected  by  debiting  Merchandise  and  crediting  Bills 
Receivable,  thus  disposing  of  the  matter  at  once.  But  suppose  the  real 
value  to  remain  in  doubt.  The  account  may  be  worth  its  face,  or  50  %  of  its 
face,  or  nothing.  In  this  case — and  particularly  if  there  were  other  accounts 
of  the  same  character — it  would  be  well  to  open  a  "  Suspense  "  account,  and 
credit  it  with  an  amount  equal  to  the  supposed  deficiency,  debiting  Loss  and 
Gain  with  the  same.  This  would  leave  the  doubtful  accounts  standing  as 
resources,  but  being  offset  by  Suspense  as  a  liability,  the  question  of  value 
would  be  left  to  be  determined  by  the  final  results.  In  either  case, 
the  account  showing  resource  should  be  credited  and  Suspense  debited.  If 
payments  of  value  are  made,  they  will  appear  to  the  debit  of  some  resource 
account  and  credited  to  Loss  and  Gain. 

This  method  will  be  found  preferable  to  that  of  closing  doubtful  accounts 
into  Suspense  ;  as  it  is  equally  effective  in  guarding  against  fictitious  gains, 
and  leaves  the  doubtful  accounts  undisturbed  for  a  more  satisfactory  adjust- 
ment. 


202 


APPENDIX. 


BUSINESS     FORMS 


BILLS. 

1.   Produce. 


Thos.  May  Peirce, 


New  York,  Sept.  1,  1879 
Bo't  of  Halliday  &  Smith. 


100  brls.  Flour, 

"State  Superfine"     -    -    -    @  $6.8o 

630 

50    do.      do. 

"St.  Louis  XX."    -    -    -     .      «    9.50 

475 

110    do.      do. 

"  Western  Extra,"      ...     «    6.*o 
Rec'd  Payment, 

704 
1809 

« 

Halliday  &  Smith. 

2.    Groceries. 


C.  E.  Cady, 


New  York,  Dec.  13,  1879. 
Bo't  of  H.  K.  Thurber  &  Co. 


60  lbs.  Granulated  Sugar, @  10^)^ 

100  do.  Crushed  do.         "   12^ 

50  boxes  Adamantine  Candles,  143  lbs.,      -  "  15)^ 

5  bags  Porto  Rico  Coffee,  150  lbs.,   -     -    -  «  16|)^ 


12 
21 
24 


64 


30 

45 

75 

50 


a   Dry  Goods. 


J.  F.  MooAR  &  Co., 


Syracuse,  June  10, 1879. 
Bo't  of  C.  P.  Meads. 


5  pes.  N.  Y.  Mills  Sheetings,  72  in.,  185  yds.,  @  27^/- 
3  do.  Red  Cross  Cambrics,  96 1   "     "     8^ 

10  do.  Victoria  Ginghams,  143     *'     "  28)^ 

1   do.  Franconia  Denims,  36 1   "     "  \^f 


203 


50 

88 

7 

72 

40 

04 

5 

48 

104 

12 

APPENDIX. 


RECEIPTS. 

1.  On  Account. 


^600,  Chicago,  May  4,  1879. 

Received  April  30,  1879,  Five  Hundred  Dollars,  on  account  ot 
Joseph  H.  Palmer. 

H.  B.  Bryant  &  Co. 

2.   In  Full  of  all  Demands. 


^6/>-5,  St.  Louis,  Oct.  24,  1879. 

Received  of  E.  P.  Heald  Six  Hundred  and  Forty-five  Dollars,  in 
full  of  all  demands. 

W.  M.  Carpenter. 

3.    To  Apply  on  Contract. 


^/OOO.  New  York,  Aug.  16,  1879. 

Received  of  E.   G.   Folsom,  One  Thousand  Dollars,  the  same  to 
apply  on  contract  for  building  house,  dated  May  1,  1879. 

George  W.  Latimer. 

4.    To  Apply  as  an  Endorsement. 

^/60.  Philadelphia,  Mar.  4,  1879. 

Received  on  the  within  note,  One  Hundred  and  Fifty  Dollars. 

J.  E.  Soul:6. 

5.    Receipt  for  Property. 

Rochester,  Apr.  28,  1879. 
Received  of  A.  W.  Randall,  the  following-  enumerated  articles  to 
be  held  in  trust  for  him,  and  returned  on  his  demand :  one  Gold  Watch 
(hunting  case),  two  Promissory  Notes,  each  dated  June  8,  1878,  and  signed  by 
L.  L.  Williams — one  for  Three  Hundred  Dollars,  due  in  six  months  from  date, 
and  one  for  Seven  Hundred  Dollars,  due  in  one  year  from  date. 

Thos.  H.  Shields. 

NOTES. 

1.    Individual  Note. 


^S7S.  Utica,  Wov.  20,  1879. 

One  month  from  date,  I  promise  to  pay  to  H.  B.  McCreary,  or 
order,  Three  Hundred  and  Seventy-five  Dollars,  without  defalcation,  for  value 
received,  at  Second  National  Bank. 

John  R.  Carnell. 

204 


APPElirDIX. 


2.    Joint  Note. 


^200,  New  York,  July  1,  1879. 

Ninety  days  from  date,  we  promise  to  pay  to  the  order  of  L.  S. 
Metcalf,  at  Ms  office,  Two  Hundred  Dollars,  value  received. 

D.  Appleton. 
Charles  Scribner. 

3.    Joint  and  Several  Note. 


^660.  Brooklyn,  Aug.  17,  1879. 

Nine  months  after  date,  we,  or  either  of  us,  promise  to  pay  Henry 
A.  Tidd,  or  order,  Six  Hundred  and  Fifty  Dollars,  value  received. 

A.  S.  Gladwin. 
H.  K.  Motley. 

4.    Principal  and  Surety  Note. 


f^SOO.  San  Francisco,  Feb.  6,  1879. 

For  value  received,  on  or  before  July  6,  1879,  I  promise  to  pay  to 
the  order  of  F.  B.  Clemmer,  Three  Hundred  Dollars. 

Alva  S.  Walker,  Principal. 
James  Thompson, 


Note.— The  usual  form  of  a  principal  and  surety  note  is  for  the  principal  to  properly 
sign  the  note,  and  the  surety  to  endorse  it. 

5.    Note,  Payable  to  Bearer  (with  interest). 


^^76.  Kingston,  Pa.,  Aug.  1,  1879. 

Sixty  days  from  date,  I  promise  to  pay  W.  L.  Dean,  or  bearer. 
Four  Hundred  and  Seventy-five  Dollars,  with  interest  from  date. 

L.  L.  Sprague. 
6.    Non-negotiable  Note. 


^800,  Boston,  Jan.  4,  1879. 

For  value  received,  I  promise  to  pay  to  Ira  Mayhew  on  demand. 
Eight  Hundred  Dollars. 

D.  T.  Ames. 

7.    Chattel  Note. 


^900.  Trenton,  June  17,  1879. 

Thirty  days  from  date,  for  value  received,  I  promise  to  pay  to 
Arthur  S.  Gladwin,  or  order.  Nine  Hundred  Dollars  in  "  Thurber's  Perfection  ** 
Flour,  at  the  then  market  rate,  the  same  to  be  delivered  at  the  option  of  the 
owner  within  the  limits  of  the  city  of  Trenton. 

Joseph  Brouwere. 

205 


APPEiq-DIX. 

DRAFTS. 

1.  Sight  Draft. 


^600.  Buffalo,  Be'pt  1,  1879. 

At  sight  pay  to  the  order  of  A.  H.  Hinman  Five  Hundred  Dollars, 
and  charge  to  account  of 

C.  L.  Bkyant. 
To  W.  P.  Gregory. 
Newark,  N. 


EGORY,  ) 


2.   Time  Reckoned  from  Sight. 


^/OO,  Easton,  Pa.,  Jan.  2,  1879. 

At  ten  days'  sight  pay  to  the  order  of  W.  Blackman,  at  Citizen's 
Bank,  One  Hundred  Dollars,  value  received. 

J.  L.  Knauss. 


To  E.  M.  HUNTZINGER, 

Providence, 


ZINGER,  ) 

B.L      \ 


3.   Reckoned  from  Date. 


^/^S^  Manchester,  N.  H.,  April  20,  1879. 

Ten  days  from  date  pay  to  James  H.  Lansley  or  order,  One  Hun- 
dred, Seventy  five  and  ^^^^  Dollars,  value  received. 

G.  A.  Gaskell. 


To  H.  E.  HiBBARD  &  Co., 
Boston,  Mass. 


DUE      BILLS. 

1.   For  Cash   Drawing   Interest. 


^260.  Washington,  D.  C,  June  15,  1879. 

Due  Henry  C.    Spencer,  on  demand,   Two  Hundred  and  Fifty 
Dollars,  with  interest  from  date. 

Zalmon  Richards. 

2.   For  Merchandise,  ^^^ithout  Interest 


^/OOO,  Brooklyn,  Avg.  17,  1879. 

Due  R.  M.  Bartlett  or  order.  One  Thousand  Dollars,  payable  in 
wheat  at  market  price,  on  the  first  day  of  October  next. 

Charles  Claghoen. 
206 


APPENDIX. 

ORDERS. 

1.   To  Apply  on  Account. 


^4^.  Baltimore,  Oct.  15,  1879. 

Messrs.  E.  Burnett  &  Co.  will  please  pay  to  the  bearer  Forty-five 
Dollars  in  merchandise,  and  charge  the  same  to  my  account. 

F.  H.  Caspabi. 
2.   In   Full  of  Account. 


^60.  New  York,  April  13, 1879. 

C.  E.  Cady,  Esq. : 

Please  pay  to  H.  C.  Wright,  or  bearer.  Fifty  Dollars  in  goods, 
and  this  shall  be  your  receipt  in  full  of  my  account. 

Wm.  Aulen  Miller. 

CHECKS. 

1.   Payable  to   Bearer. 


^/60.  New  York,  March  18, 1879. 

Second  National  Bank. 

Pay  to Jonathan  Jones,  or  bearer,  One  Hundred  and 

Fifty Dollars. 

A.  W.  Randall. 

2.   Payable  to  Order. 


^200.  New  York,  May  9, 1879. 

East  River  National  Bank. 

Pay  to- Byron  Horton or  order.  Two  Hun- 

ired Dollars. 

S.  S.  Packard. 

3.   Certificate  of  Deposit. 


^84-6,  Philadelphia,  Nov.  14,  1879. 

Keystone  National  Bank. 

Thos.  M.  Peirce  has  deposited  in  this  Bank,  Eight  Hundred  and 
Forty-five  Dollars,  payable  to  J.  E.  Soule  or  order,  on  return  of  this  certificate. 

(No.  406.)  Alexander  H.  Small,  Teller, 

307 


SET     OF 


APPEIS^DTX. 

EXCHANGE. 
1, 


Bxchaiige  for  £600,  New  Yokk,  July  5, 1879. 

Ten  days  after  sight  of  this  my  first  Bill  of  Exchange  (second 
and  third  of  same  tenor  and  date  unpaid),  pay  to  S.  S.  Packard  or  order,  Five 
Hundred  Pounds  sterling,  value  received,  with  or  without  further  advice. 

T.  A.  Edison. 
To  Brown  Brothers  &  Co.,  ) 
Bankers,  Liverpool,  ) 

2. 

Exchange  for  £600,  New  York,  July  5, 1879. 

Ten  days  after  sight  of  this  my  second  Bill  of  Exchange  (first  and 
third  of  same  tenor  and  date  unpaid),  pay  to  S.  S.  Packard  or  order.  Five 
Hundred  Pounds  sterling,  value  received,  with  or  without  further  advice. 

T.  A.  Edison. 
To  Brown  Brothers  &  Co.,  ) 
Bankers,  Liverpool.  ) 

3. 

:Excha7ige  for  £600,  New  York,  July  5,  1879. 

Ten  days  after  sight  of  this  my  third  Bill  of  Exchange  (first  and 
second  of  same  tenor  and  date  unpaid),  pay  to  S.  S.  Packard  or  order,  Five 
Hundred  Pounds  sterling,  value  received,  with  or  without  further  advice. 

T.  A.  Edison. 
To  Brown  Brothers  &  Co.,  ) 
Bankers,  Liverpool.  ) 


ACCOUNT     SALES. 

Account  Sales  of  2000  Bush.  Canadian  Club  Wheat,  on  %  and 
risk  of  C.  P.  Meads,  Syracuse. 


1879 

June 

18 

'.U 

20 

May 

17 

June 

20 

C.  L.  Stewart  on  %, 

1500  bush.  @  $2.35  -    -    -    -  $3525 
G.  C.  Cannon,  cash, 

500  bush.  @  $2.40  ...    -    1200 

CHARGES 


Freight  and  Drayage $325 

Storage,  Ins.,  etc. 17  26 

Government  Tax 5  91 

Commission  2^%  on  $4725      -    .    -    -      118  12 
C.  P.  M.'s  net  proceeds 


4725 


$4258 


71 


Byron  Horton  &  Co. 


Nbw  York,  June  20^  1879. 


208 


RETURN  TO  nil^^^  USE  ^^" 


^«  booic  is  due  on  *e7as7d„e^   ^"®t«"«l/?f^ 
on  die  date  to  which  Lf"'?'*  ''^'•'w,  or 


1 


YB  30910 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 


